Tax Tips for Same-Sex Couples

February 22, 2010

The New York Times
February 22, 2010

Gay couples have complicated financial lives, and preparing tax returns is no exception. Since the federal government doesn’t honor the freedom to marry, gay couples who are living in states that do recognize their various legal unions must still file separate federal returns. That requires more record-keeping and planning than their heterosexual counterparts — and oftentimes, gay couples will have to pay more to an accountant to prepare their returns.

But the consequences aren’t all negative. By remaining unmarried, some same-sex couples will avoid the so-called marriage penalty. This occurs when a couple’s combined income pushes them into a higher tax bracket than if they had remained single. Or, they may qualify for more tax deductions or credits that phase out as their income rises.  [Link]