Tax and inheritance laws usually favor married couples. Combined tax savings and surviving spouse benefits are built-in marriage perks, but not for same-sex couples. The marriage of a same-sex couple is not legal or recognized under Michigan and federal laws, because the union does not involve a man and a woman.
But a growing number of states have legalized gay and lesbian relationships, either as civil unions or marriages. Federal and Michigan tax and inheritance rules remain tied to the Defense of Marriage Act, prohibiting the recognition of non-heterosexual marriages.
The U.S. Census Bureau estimates that the number of married same-sex couples exceeds 130,000 nationwide. For tax and estate matters, even couples who live in gay and lesbian-friendly states have financial obstacles that heterosexual couples don't.
The Internal Revenue Service does not allow married couples of the same sex to file jointly, even when they live in states where their marriages are legal. The only options partners have are to file individually as "single" or "head of household."
"Head of household" status includes a federal deduction of $8,700 for this tax year, compared to a "single" deduction of $5,950. A taxpayer must support a "qualifying" individual and more than 50 percent of a household's expenses to get those savings.
The "qualifying" person is usually a child, who must have a biological or legal connection to the taxpayer. Same-sex couples may include one partner with a biological tie to the child and another partner who provides financial support. In that case, neither parent would meet "head of household" qualifications.
Dependent tax benefits are also elusive in gay and lesbian marriages. With no option to file federal taxes jointly, dependent claims are usually limited to one partner. A taxpayer must have a legal parental connection to a dependent child, biologically or through adoption, to receive child-related tax exemptions or credits.
And, of course, this gets much more complicated when a same-sex couple decides to divorce or separate and there are considerable shared assets or children involved.
Source: Reuters, "Newly married gay couples face tax landmines," Amy Feldman, Aug. 27, 2012
Source: http://www.michigandivorceblog.net/2012/09/why-same-sex-marriages-are-literally-more-taxing.shtml
huntsman w.e. episodes idris elba kelsey grammer martin henderson mlk day
No comments:
Post a Comment