One of the many changes that that will affect gay and lesbian married couples is in the area of income taxes.
A February report by the Williams Institute, a UCLA law school think tank that studies sexual orientation and gender identity law, found that “most married lesbian, gay, bisexual and transgender workers pay more in income taxes than they would if allowed to file as ‘married, filing jointly’, especially for spouses with very different incomes. For example, a working parent with taxable income of $60,000 a year and a stay-at-home spouse with no income would pay $2,900 more as individuals than as a couple. ”
The report goes on to say that “until now, working LGBT parents couldn’t establish legal ties to their spouses’ children, so generally were not able to claim child-related exemptions, deductions and credits.” In this new post DOMA world, they will probably be able to establish legal ties and claim the tax benefits.
Another area in which they may benefit is that of Social Security. When the first spouse dies, the surviving spouse most likely will be able to collect the deceased spouse’s Social Security if the amount is higher than theirs.
As mentioned in an earlier blog, estate tax is a third area in which these couples should see a major benefit. In the past, when one person died, the other partner had to pay taxes on any inherited assets. Now, as a legally married couple, when one spouse dies, all their assets could go to the surviving spouse without any tax penalty being imposed .
Finally, legally married gay couples should review any tax returns they filed since their weddings. They may be eligible to amend their returns to file jointly and take other deductions that were not previously available to them.
There are more than 1,000 federal statutes related to benefits that, until now, were only available to married couples consisting of a man and a woman. They will now be available to same sex married couples as well.
For more information about estate planning and other issues related to getting your affairs in order, go to https://www.diesmart.com.