Attorney Scott Squillace Discusses The Legal and Tax Issues Faced By Gay And Lesbian Couples

For same-sex couples, the decision to marry is not as simple as saying, “I do.” Complex issues due to recent court and legislative actions, which affect couples in some states differently than those in other states, have created a complex web of legal and tax issues for same-sex couples. Whether To Wed: A Legal And Tax Guide For Gay And Lesbian Couples, by Scott Squillace, Esq., provides an in-depth look at the legal and tax consequences of marriage, and is an invaluable tool with practical suggestions for both married couples and those contemplating marriage.

The Pros of Getting Married:
Income Tax: By filing a joint tax return, married couples whose incomes are different may be eligible for a lower tax rate, known as the “marriage bonus.” Refunds may now be available for already married same-sex couples who paid too much over the past three years.

Estate Tax: States that have an estate tax and that recognize same-sex marriages allow an unlimited marital deduction for a surviving spouse. The federal government now also recognizes the marital deduction – so no estate tax will be due for a surviving spouse.

Social Security: Same-sex couples are eligible for Social Security spousal benefits at retirement, when disabled, or at one spouse’s death, as long as they reside in a state that recognizes same-sex marriage.

Private Pension/Retirement Benefits: Following the Supreme Court decision, the Department of Labor stated that the term “spouse,” when pertaining to employee benefit plans, shall include same-sex spouses, even if the employee resides in a state that does not recognize the marriage.

The Cons of Getting Married:

Income Tax: Married couples whose incomes are both high may be subject to higher income tax rates and fewer deductions since they will now be required to file as “married” – known as the “marriage penalty.”

Medicaid: Since the assets and income of both spouses are considered for determining eligibility, being married can be a handicap if one spouse has income and assets that cause the couple to be above the eligibility limits. This can affect eligibility for nursing home care.

Divorce: If a married couple lives in a non-recognition state, even if lawfully married in a recognition state, divorce can be tricky, or even impossible.

Nothing Is Certain But Death and Taxes (and Marriage Equality, Heyy!): Tax Preparation for the LGBT Community Workshop

Local LGBT-friendly tax advisor Jules Tybor will present an LGBT Tax Preparation Workshop on Wednesday, March 5 at The Tivoli.

HRC experts available on tax issues for same-sex couples and legislative solutions

With Tax Day coming up on April 15, experts from the Human Rights Campaign are available to discuss the inequalities faced by same-sex couples and the status of legislation to address them.


To speak with an HRC expert, contact: Michael Cole at Michael.Cole@hrc.org, Office: 202-216-1553, or Cell: 202-716-1651.

Tax tips for gay couples

Without the right preparation, gay couples can end up paying more than their fair share of taxes. The New York Times Bucks Blog has some important tax tips you'll want to check out before you get yours done this year.

Matter of fact, they've got a whole category of articles called 'What If You're Gay?'

How funny - and informative - is that?

Tax Day web chat with HRC

On April 14, in advance of Tax Day," the Human Rights Campaign, the nation’s largest lesbian, gay, bisexual and transgender civil rights organization, will host a national web chat on a variety of financial issues currently facing members of the LGBT community. During the discussion, HRC and several financial experts will highlight the unique legal inequalities and hurdles facing the LGBT community with regard to financial, tax and estate planning issues. Federal law treats same-sex couples as strangers, thereby denying them the 1,138 federal rights, benefits and protections available to different-sex married couples. Questions may be submitted in advance by emailing: webchat@hrc.org.

Queercents sez: It's good to be a gay couple at tax time

Helen Maynard explains why it's good to be a two income gay couple at tax time.

Ever feel like a second-class citizen at tax time? That's because you are

As millions of Americans file their income taxes, a coalition of lesbian, gay, bisexual and transgender advocacy groups call attention to the tax inequities facing same-sex couples as a result of the state and federal laws that refuse to recognize or extend civil marriage protections to same-sex couples. Marriage Equality USA, Join the Impact and the Human Rights Campaign have collectively organized a series of events at U. S. Post Offices across the nation to highlight the ongoing moral and financial costs of denying marriage equality to same-sex couples—as well as the consequences paid by all Americans as a result of these discriminatory state and federal laws.

“Each tax season, same-sex couples sit at their dining room tables and are forced to live a legal lie by checking ‘single’ despite their decades together and then arbitrarily dividing up their joint household’s income, expenses, and dependents,” said Molly McKay, Marriage Equality USA Media Director. “Then we write checks to the IRS for social security taxes, knowing that when we die our families will not even have access to any of the family ‘safety net’ benefits provided in the form of social security survivor benefits, estate tax deferral, and other programs that we help fund through our tax dollars and that only heterosexual couples and their children will enjoy.”

Read more after the jump.


“The tax inequities faced by loving, committed same-sex couples make them less able to care for each other and their families,” said Human Rights Campaign President Joe Solmonese. “Even same-sex couples in states that do legally recognize their unions are penalized by the federal government simply for building a family with the person they love. This is an injustice that can and must end.”

“Whether couples are married, civil unioned or have no state protections under state law, all same-sex couples in the United States are treated as ‘single’ under federal law. The U.S. Census has declared that they will not recognize married same-sex couples as “married” in the 2010 Census. We cannot allow our community to be erased,” said Amy Balliett, co-founder of Join the Impact. “Tax season is yet another time where same-sex couples are reminded that despite abiding by the requirements of American citizenship by paying our taxes, we are still are treated as second class citizens.”

A study produced by the Congressional Budget Office (CBO) debunks the myth that granting same-sex couples the freedom to marry would cost the government money. In fact, it would save taxpayer dollars. Same-sex couples are not the only ones paying for marriage discrimination, all taxpayers fund this discrimination which amounts to as much as $1 billion nationwide.



GLBT "Tax Day" web chat

In advance of April 15 – “Tax Day” – the Human Rights Campaign, the nation’s largest lesbian, gay, bisexual and transgender civil rights organization, will host a national web chat on a variety of financial issues currently facing members of the LGBT community. During the discussion, HRC and several financial experts will highlight the unique legal inequalities and hurdles facing the LGBT community with regard to financial, tax and estate planning issues. Federal law treats same-sex couples as strangers, thereby denying them the 1,138 federal rights, benefits and protections available to different-sex married couples. Questions may be submitted in advance by emailing:webchat@hrc.org.

April 12 is Colorado Tax Freedom Day

Tax Freedom Day – the date on which Americans will have worked long enough to have earned enough money to pay this year’s tax obligations at the federal, state and local levels – will fall on Sunday, April 12 for residents of Colorado. The date for all Americans will be Monday, April 13.

Colorado’s date is nine days earlier than in 2008. There is an earlier overall date for the nation for two reasons: (1) the recession has reduced tax collections even faster than it has reduced income, and (2) the stimulus package includes large temporary tax cuts for 2009 and 2010. Nevertheless, Americans will pay more in taxes than they will spend on food, clothing and housing combined.

Ever feel like a second-class citizen at tax time? That's because you are!

Tax time is a reminder of the unequal treatment of same-sex couples by the federal government, which grants to our straight, married counterparts many benefits, including the right to file a joint return, as this article from 365Gay.com notes. Couples who live in states where their unions are legally valid have the option of filing jointly there, but still must complete two single-payer federal returns.

Not fair.

But there are steps gay couples can take to save a little bit on taxes when April 15 rolls around, as this article in MetroWeekly.com (a few years old but still valid) points out.

The t-shirt above (for pets and people) reads "Love should not be taxing. No to more taxes. No to fewer rights. Support same-sex marriage" and is available here.