How Gay Marriage Will Change Couples' Financial Lives - NYTimes.com - 0 views
-
there’s still a long list of federal benefits that will remain out of reach. Since the federal Defense of Marriage Act — which defines marriage as between a man and a woman — is still being enforced, gay couples in New York will still need to file separate federal tax returns. They will not be eligible for Social Security spousal or survivor benefits. And they will continue to owe extra income taxes on their spouse’s health insurance benefits — a cost that opposite-sex married couples don’t have to pay.
-
Income Taxes Married couples will be able to file their state tax returns jointly, though they will still need to file separate federal tax returns (either as single or head of household). Some couples who jointly earn less than $65,000 may end up paying less in state income taxes than if they filed individual tax returns because they will get what known as a marriage bonus. But some couples with higher income may be end up in a higher tax bracket by filing jointly. In other words, they would owe less if they remained single and filed separate returns, said Tina Salandra, a New York accountant with expertise in planning for same-sex couples. Filing joint state returns is also likely to complicate matters for federal tax purposes, and it’s likely to cost the couple more in tax preparation fees (or time, if they fill out their own returns). Here’s why: Even though the couple must file separate federal tax returns (as single or head of household), they must still prepare a dummy federal tax return using a married filing status, so that they can use that data for filing their joint state return.
-
(Generally speaking, couples with similar incomes or really high incomes save money by filing individual tax returns, Adding their income together often pushes them into a higher tax bracket. But couples with a stay-at-home parent or a couple with disparate incomes would typically pay less if they could file joint returns).
- ...7 more annotations...
-
While New York had already recognized same-sex marriages performed elsewhere, that recognition didn't extend to state income taxes. Now, couples who marry and live in New York will be able to file their state tax returns jointly. Wealthier couples may end up paying more in taxes, but families with lower incomes may owe less.