Yes, we should all be pleased to learn the IRS, a federal authority, is recognizing domestic partnership relationships in California when it comes to taxing joint community property. Does this help the gays? Yes, especially if one partner earns significantly more than the other, because now the joint income is halved, with each partner listing fifty percent of the earnings on his return. But don’t think this means you can file taxes jointly; you cannot, with that DOMA thing hanging around. And also: Congratulations if you are a gay couple wealthy enough to own property and happen to file taxes in California! For the rest of us, who could benefit from some other taxation changes, this means nothing. Oh, and then there’s this:
In another chief counsel advice, the IRS said it would consider the assets of a California taxpayer’s registered domestic partner when determining the “reasonable collection potential of a taxpayer’s Offer In Compromise.” That could make it harder for one partner who is trying to settle a federal tax debt to pay less than the full amount because the IRS, when determining his or her ability to pay, would look at the other partner’s resources.
Sometimes you win, sometimes you lose.
Timothy
“Congratulations if you are a gay couple wealthy enough to own property and happen to file taxes in California! For the rest of us, who could benefit from some other taxation changes, this means nothing.”
Wealthy enough to own property? Wow, that’s amazingly ill informed. There’s nothing in the story about the couple being required to own property, you just pulled that right out of your ass.
Assume that a couple makes a whopping $50,000 from one partner while the other doesn’t work. They own nothing. Before the change their total federal tax burden was $5,907. After the change it is $3,110, a savings of $2,797.
But I guess that means nothing.
Randy
In what way is this IRS ruling bad for gays ? We should take full advantage of any step toward equity we can get, while still fighting for full equality. I’m immediately filing amended tax returns to claim refunds for the last several years, since I’m the sole breadwinner while my husband stays at home to care for our young kids.
And the author of this queerty article is misinformed and an idiot. The benefit of the ruling is mostly to enable domestic partners, either gay or nongay, to split income and thereby pay lower total taxes. Owning or not owning property is a nonissue.
Shouldn’t gay people support one another and not resort to classist bullshit like referring to The Rich Calfornia Gays? Give me a break.