• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Contact Us
  • About Towleroad
  • Towleroad on Social Media
  • Privacy Policy

Towleroad Gay News

Gay Blog Towleroad: More than gay news | gay men

  • Body
  • Daily Resist
  • POLITICS
  • Travel
  • Music
  • Theatre
  • Film
  • TV
  • Sports
  • Business
  • Men
  • Marriage Equality
  • Space
  • Trans Rights
  • Books
  • Science
  • Gay Iconography
  • TowleREAD

The IRS’s Big Gay Tax Problem

July 19, 2013 by Sean Mandell

6a00d8341c730253ef014e86440e22970d-800wiFollowing the Supreme Court's decision to overturn the majority of the federal Defense of Marriage Act (DOMA), many questions have lingered over the thousand or so benefits that married gay couples are now eligible to receive. However, the IRS, in an attempt to comply with the court's ruling, has found itself in something of a quandry. One key problem in making equality a reality is geography, as Businessweek reports:

"Those living in Washington, D.C., or the 13 states that allow same-sex
marriages can file a federal tax return next April just like other
married couples. Not so for the thousands of gay couples who took their
vows in one of those states but who live in one of the 37 others where
same-sex marriage isn’t recognized. It’s not yet clear whose definition
of marriage the IRS is supposed to follow in evaluating their taxes—the
state where the couple got married, or the one in which they reside. And
will the federal government recognize gay couples in civil unions who
file a joint return?

To avoid confusion, a single nationwide rule makes the most sense, says
Patricia Cain, a tax law professor at Santa Clara University in
California. "The IRS has the power to construe the Internal Revenue
Code,” she says. “So for them it’s, ‘What does the word spouse mean?’ ”
President Obama has weighed in, saying it’s his “personal belief” that
same-sex couples should get the same federal benefits as married couples
regardless of where they live. He’s asked federal agencies to research
legal issues that might stand in the way. Such a ruling, though, could
cause headaches for the IRS, which until now has typically followed
states’ definitions of marriage, says David Herzig, a tax law professor
at Valparaiso University. “You may solve this problem,” he says, “but
you may open up another.”

Businessweek also suggests that it's unclear whether gay couples will benefit financially in a broad way if they can file joint tax returns. While filing separately will maximize tax savings for some, filing jointly will be more beneficial for others. And there's also the question of refunds. As the IRS normally allows taxpayers three years to re-do their tax returns, some couples may be eligible for increased refunds. But should a couple end up owing the federal government more after filing together, will the IRS require couples to pay the additional tax?

Pay-roll taxes on employer-provided health insurance, incurred only by same-sex spouses, present another headache:

"The IRS could allow refunds, and then
businesses would have to figure out how to distribute them to employees
and ex-employees. Some companies pay married gay employees extra to
cover their health-care tax burdens; they would have to decide whether
to seek reimbursements from workers who get income tax refunds."

However, with a congress hostile not only to the Obama administration but also to the IRS in particular, it's almost certain that any attempt to formally codify gay marriage into the tax code will draw the ire of the right: “No matter what [the IRS does],” says Herzig, “it’s such a volatile issue they’ll end up getting a challenge.”

Filed Under: DOMA, Supreme Court Tagged With: DOMA, gay marriage, Law - Gay, LGBT, Supreme Court

Recent Posts

  • FOX News’ Maria Bartiromo Cries to Josh Hawley Over Her Loss of More Than 100K Twitter Followers Since the Election: WATCH

    FOX News’ Maria Bartiromo Cries to Josh Hawley Over Her Loss of More Than 100K Twitter Followers Since the Election: WATCH

    2 hours ago
  • Lady Gaga Shares Video of Gay Nightclub in ‘COVID-Free’ Australia Partying to Chromatica: WATCH

    Lady Gaga Shares Video of Gay Nightclub in ‘COVID-Free’ Australia Partying to Chromatica: WATCH

    2 hours ago
  • NYPD Seeks Information on Suspect Who Punched Man, Said ‘I’m Gonna Kill You, You F—king Homo’

    NYPD Seeks Information on Suspect Who Punched Man, Said ‘I’m Gonna Kill You, You F—king Homo’

    3 hours ago
  • Giuliani’s Cuckoo Election Fraud Witness Melissa Carone is Running for Office

    Giuliani’s Cuckoo Election Fraud Witness Melissa Carone is Running for Office

    3 hours ago
Previous Post: « Movies: “Fruitvale Station” (When a Movie is Not Just a Movie)
Next Post: House Republicans Give Up On Gay Marriage Fight: READ »

Primary Sidebar

  • FOX News’ Maria Bartiromo Cries to Josh Hawley Over Her Loss of More Than 100K Twitter Followers Since the Election: WATCH

  • Lady Gaga Shares Video of Gay Nightclub in ‘COVID-Free’ Australia Partying to Chromatica: WATCH

  • NYPD Seeks Information on Suspect Who Punched Man, Said ‘I’m Gonna Kill You, You F—king Homo’

Recent Posts

  • FOX News’ Maria Bartiromo Cries to Josh Hawley Over Her Loss of More Than 100K Twitter Followers Since the Election: WATCH

    FOX News’ Maria Bartiromo Cries to Josh Hawley Over Her Loss of More Than 100K Twitter Followers Since the Election: WATCH

    2 hours ago
  • Lady Gaga Shares Video of Gay Nightclub in ‘COVID-Free’ Australia Partying to Chromatica: WATCH

    Lady Gaga Shares Video of Gay Nightclub in ‘COVID-Free’ Australia Partying to Chromatica: WATCH

    2 hours ago
  • NYPD Seeks Information on Suspect Who Punched Man, Said ‘I’m Gonna Kill You, You F—king Homo’

    NYPD Seeks Information on Suspect Who Punched Man, Said ‘I’m Gonna Kill You, You F—king Homo’

    3 hours ago
  • Giuliani’s Cuckoo Election Fraud Witness Melissa Carone is Running for Office

    Giuliani’s Cuckoo Election Fraud Witness Melissa Carone is Running for Office

    3 hours ago
  • Senate Panel Holds Confirmation Hearing for Transportation Secretary Nominee Pete Buttigieg: WATCH LIVE

    Senate Panel Holds Confirmation Hearing for Transportation Secretary Nominee Pete Buttigieg: WATCH LIVE

    3 hours ago
  • Sean Hannity Accuses Democrats of Inciting the Insurrection, Says He’s Considering Joining COVID Anti-Vaxxers: WATCH

    Sean Hannity Accuses Democrats of Inciting the Insurrection, Says He’s Considering Joining COVID Anti-Vaxxers: WATCH

    4 hours ago
  • Transphobic, Insurrection-Supporting Former MLB Pitcher Curt Schilling Wants Off Ballot After ‘Hall of Fame’ Rejection, Defends His Character in Facebook Post

    Transphobic, Insurrection-Supporting Former MLB Pitcher Curt Schilling Wants Off Ballot After ‘Hall of Fame’ Rejection, Defends His Character in Facebook Post

    4 hours ago
  • QAnon GOP Rep. Marjorie Taylor Greene Indicated Support for Executing Nancy Pelosi and Other Democrats in Social Media Posts

    QAnon GOP Rep. Marjorie Taylor Greene Indicated Support for Executing Nancy Pelosi and Other Democrats in Social Media Posts

    5 hours ago
  • Republican Senators Circle Wagons Around Trump in Preliminary Impeachment Vote

    Republican Senators Circle Wagons Around Trump in Preliminary Impeachment Vote

    6 hours ago
  • Bigfoot, Cheyenne Jackson, Meghan McCain, ‘It’s a Sin’, Ted Wheeler, Snoopy, Boise Gay Bar: HOT LINKS

    Bigfoot, Cheyenne Jackson, Meghan McCain, ‘It’s a Sin’, Ted Wheeler, Snoopy, Boise Gay Bar: HOT LINKS

    21 hours ago

Most Commented

  • Advertise
  • Contact Us
  • About Towleroad
  • Towleroad on Social Media
  • Privacy Policy

Footer

Copyright © 2021 · Log in