Some tips on
avoiding drama this tax season.
Ttax season is
the most frustrating time of year for gay couples. W-2s,
1099s, 1040s, schedule A’s and
C’s—it’s difficult enough for married
couples to figure out our tax code, let alone gay couples,
who are forced to pay taxes to a government that
doesn’t recognize our relationships. Thanks to
the Defense of Marriage Act, we can’t file taxes
jointly—and let’s face it, most tax
preparers and most software are just not capable of
helping us out here.
One of the
biggest ways we’re screwed at tax time is how the
feds consider the value of domestic-partner benefits.
Although many companies now provide health insurance
and long-term care, among other benefits, to the
partners of gay and lesbian employees, guess what? You will
be taxed on the value of these benefits. But your
married straight buddy down the hall? He gets a free
pass.
The cost of this
inequity also affects businesses that, in addition to
paying additional taxes, must also absorb administrative
costs associated with record keeping and reporting
this “imputed income,” as the government
calls it. That’s why major companies like Citigroup,
Corning, and Ernst & Young support the elimination
of federal tax inequalities related to domestic-
partner benefits. With their backing, the case for
ending this inequity is even stronger.
Click here to follow The Advocate on Twitter.
Page 1 of 2
This article is for information only and is not
financial, legal, or tax advice. Readers should obtain
advice specific to their situation before making
any financial, legal, or tax decisions.