Posts Tagged ‘marriage penalty’

Credits, Shelters, Gaps, Collections and Rates

On the Hill next week: The House Ways and Means Subcommittee on Oversight holds a hearing on June 10 to review the government’s ability to verify income and insurance information when it comes to the Affordable Care Act’s tax credits and subsidies. About two million people who purchased health care through the ACA exchange  provided information […]

Are Domestic Partnerships A Way For Heterosexual Couples To Avoid The Marriage Tax Penalty?

In their zeal to provide a legal alternative to banned marriage for same-sex couples, some states may have created a new tax shelter for heterosexual couples. By choosing domestic partnership or civil union over marriage, opposite-sex couples are able to avoid paying a federal income tax marriage penalty, just as same-sex couples can. Over the […]

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 […]