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Tax Season for Same-Sex Couples

This past August, the IRS announced that same-sex couples who were married in recognition states would be considered a married couple on their federal taxes. Whether you are a same-sex married couple or a couple who is contemplating marriage, there are several questions and considerations to address for this tax season, and beyond. Here are five of them right now:

1) Is it the "place of domicile" or the "place of celebration" that matters for taxes?

For federal tax purposes, it's the place of celebration. So says the FAQ page for same-sex spouses on the IRS site. If you were married in a recognition state, like New York, but now live in a non-recognition state, you would be considered legally married by the IRS, and you'd have the option of filing jointly. State taxes and other state issues are another matter altogether.

2) Tax Disadvantages

Taxes can increase for same-sex couples who get married. Yes, filing jointly can mean tax benefits in certain situations, but if you are both collecting income, you could be bumped up to a higher tax bracket.

3) Capital Gains & Taxes

Of course, there can also be substantial tax benefits to filing as a married couple. One huge benefit is in the area of capital gains. Let's say that a same-sex couple has to move for because of a job opportunity, and so they sell their home for a profit. If they are married and file for taxes jointly, they could exclude $500,000 of that profit out of their taxable income. Someone who filed individually could only save half that much. That could mean a massive difference for your future.

4) Estate Taxes & Marriage

There are estate taxes in 12 recognition states and in 4 non-recognition states; a surviving spouse can get an unlimited deduction on an estate, another financial benefit of marriage.

5) The Invaluable Help of Financial & Legal Experts

Professionals with financial and legal expertise can provide invaluable help, whether you face taxes, are looking ahead to marriage, or want to tackle estate planning. Ideally, you can find a professional who is not only qualified to help out with such financial matters, but who is also well-versed in current legislation and the special legal issues that same-sex couples face.

If you are a same-sex couple looking for a family lawyer in Long Island, you can find the experienced professional you deserve on your side at the Meyers Law Group, P.C. You can find the trusted legal help you need for any family law issue, whether you face issues related to same-sex marriage or child custody, or whether you need to create a prenup or a postnuptial agreement. Learn more when you call us today!