Posts Tagged ‘marriage penalty’

An Updated Marriage Bonus and Penalty Calculator

Just in time for this year’s tax filing season (but a bit late for St. Valentine’s Day), the Tax Policy Center has updated its marriage bonus and penalty calculator. The new version lets you compare a couple’s income tax liability when they file as singles or as married for either the 2013 or 2014 tax […]

A Closing Window for Some Same-Sex Couples to File 2012 Tax Returns

Last week’s IRS ruling on same-sex marriages received a lot of attention. Going forward, a same-sex married couple must file federal income tax returns as married, regardless of whether the state where they live recognizes their marriage. In addition, same-sex couples may—but don’t have to—file amended returns for some earlier years to recoup any extra […]

IRS Recognizes Same-Sex Marriages, Regardless of Where Couples Live

Just two weeks ago, I discussed potential tax issues a same-sex married couple could face if they live in a state that doesn’t recognize their marriage. Yesterday the IRS ruled that, for tax purposes, such couples are married regardless of where they live. That ruling answers the question of what filing status the couple must […]

Same-Sex Couples after DOMA

It’s been less than two months since the Supreme Court ruled part of the Defense of Marriage Act (DOMA) unconstitutional and the fallout has only begun to settle. Nowhere is there more uncertainty about the effects of the ruling than regarding federal taxes. The court struck down Section 3 of DOMA, which denied federal recognition […]

DOMA’s Demise and Federal Taxes

Same-sex couples are cheering the Supreme Court’s striking down the Defense of Marriage Act (DOMA), but the tax consequences are more of a mixed bag. For many couples, federal recognition of same-sex marriages will mean lower tax bills, but some gay couples will end up paying more. As I discussed here a few months back, […]

As Marriage Changes, Should Joint Filing Go The Way of Ozzie And Harriet?

Any day now, the Supreme Court will rule on whether same-sex married couples have the right to file joint federal tax returns. But Yale tax law professor Anne Alstott has me wondering whether the entire debate over the tax consequences of the Defense of Marriage Act is missing the point. In an upcoming paper for Yale’s Tax […]

DOMA’s Tax Hassles for Same-Sex Couples

The annual income tax season is no fun for any of us but it can be a lot worse for same-sex couples in California, Nevada, and Washington. Those three states follow community property law and recognize either same-sex marriages or domestic partnerships. The combination makes tax filing an even bigger hassle than the rest of us […]

Same-Sex Couples and Taxes

The 1996 Defense of Marriage Act (DOMA) was not primarily a tax law but it certainly affects the federal taxes that same-sex couples pay. In fact, taxes are the basis for the second of the two cases concerning same-sex marriage that the Supreme Court will hear this week. Although the federal government generally recognizes state […]

A New Marriage Penalty for High Earning Couples—and a Bonus for Some

Our new Marriage Bonus and Penalty calculator, despite all its Valentine’s Day finery, ignores the new 0.9 percent Medicare payroll tax hike buried in the 2010 health law. The extra levy affects only a few high-income couples but in very different ways. Lucky couples will collect marriage bonuses of up to $450. But those less […]

An Updated Marriage Bonus and Penalty Calculator for Valentine’s Day

Love is blind, says the adage, and that can be a good thing when it comes to taxes. That’s because married couples often pay a marriage penalty—a higher federal income tax bill than they would if they were single. But for most couples, marriage means a lower tax bill—a marriage bonus in tax-speak. Just in […]