Federal Tax Benefits!

KH826

My wife just sent me this story, and I think it impacts many families on this board:

https://www.hrc.org/blog/entry/all-legal-same-sex-marriages-will-be-recognized-for-federal-tax-purposes

So, if I am reading this correctly, I can file a joint tax return with my wife next year? And I will no longer have to pay taxes on her health benefits through my employer (not as sure about this one)?

I want to be excited, but I am hesitant. Anyone else have insight on what this means for a legally married same sex couple NOT living in a marriage equality state?

deegadee13

I have also read that we should also be able to file amendments for the last three years to reclaim as married (if you were actually married at the time). I am on the turbotax gay email blast, I guess the IRS is still trying to get their act together. 

I had not seen anything about the legal marriage in a "non-legal" state. Good to know! 

lbugher

Ladies, this is GREAT news!!!  This means our marriages will be honored as long as they were performed legally in a state with marriage equality.  So yes, KH826, that's correct - you'll be able to file your taxes jointly I think this will extend all the way through to our health benefits.  DP and I have separate tax-saver accounts and I can't tap her funds because we're not married.  But that's gonna change soon!  She just sent me an e-mail asking me to marry her - I'm so happy!  Now our TTC efforts won't completely bankrupt us!!

lbugher

The Treasury said that the ruling applies to “all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an I.R.A., and claiming the earned income tax credit or child tax credit.”  - Should apply to your employee benefits too, @KJ826

AmandaG47

This is great great great news! Thank you for sharing!

ball.and.chain

This might be helpful:
https://www.irs.gov/uac/Answers-to-Frequently-Asked-Questions-for-Same-Sex-Couples

2MamazInSeattle

We've filed out federal taxes essentially as married for the past two years. Our CPA did the research, and since we were registered domestic partners there was some requirement. I dunno. We just do what he says. Worked out great the first year, not as great the second.

lbugher

DP and I did the math yesterday... we'd have a $2500 penalty for being married is it that terrible for everyone else, too?

kristi&p

I got a letter in the mail from my employer so I will now stop seeing the additional taxes for helath care coverage. My wife is an accountant she is going to look a little deeper in to amending our taxes for past 3 years to see if its a benefit to do so or not.

2MamazInSeattle

lbugher said:

DP and I did the math yesterday... we'd have a $2500 penalty for being married is it that terrible for everyone else, too?

Yes, the first year it worked out well for us, but the second year we essentially paid a penalty for being married. I know a lot of people in Washington waiting for the 'forced' marriage conversion of their domestic partnership due to the tax implications. For us, since I was pregnant at the time, it was more important for us to be married when the baby was born then the moola...but it can be a HUGE hit depending on your income level.

lbugher

Ugh, bummer... I want us to be married but I also love the sweet refund we get after doing our taxes.  Our incomes are nearly identical because we do similar work.  I could see how it would benefit us if only one of us worked or one of us had a much higher paying job but alas... My friend is an accountant.  I'm going to ask her to figure it out for us next winter.

Jazibel

yay equal rights! thanks for sharing