New IRS rule might mean tax break for same-sex couples

The Sacramento Bee ^ | Feb. 24, 2011 | CLAUDIA BUCK

[Salman]

SACRAMENTO, Calif -- SACRAMENTO, Calif. - Many same-sex couples are getting a tax break this year from the IRS, according to new requirements to report their combined income on federal tax returns.

Under "income splitting," the IRS is requiring all same-sex married couples or registered domestic partners in Washington state, California and Nevada to divide their combined income equally and report it on their separate tax returns.

For some couples, it will mean more money in their 2010 refund; for others, they'll pay more in taxes.

Either way, the change is significant, both monetarily and emotionally, officials of Lambda Legal, the national gay and lesbian legal rights group, said Tuesday in a conference call with reporters.

Peter Renn, a Los Angeles-based Lambda attorney, hailed the new IRS requirement as a money-saver for many same-sex couples, as well as another step to "move the ball forward" in recognizing their rights.

Those who will save the most are same-sex couples with the biggest disparities in income. For instance, a couple where one earns $100,000 and the other is a stay-at-home spouse with little or no income, will split their combined community earnings on their individual tax returns, with each reporting $50,000 in income. The result: an overall lower tax bill for both.

[Hardastarboard]

How do you prove you’re gay?

There are so many bad jokes that come to mind, and none of them suitable for this forum.

[little jeremiah]

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The fact that our country (actually the ruling leftist and RINO-leftist-lite elites) are shoving the homo-nazi agenda on everyone is a very bad sign. Our Republic will only work based on moral absolutes; it will not function with a sick and depraved population or promoting depraved immorality as a public standard. It just won't work. Rough waters ahead.

[DBeers]

How exactly does the IRS have the authority to do this?

Congress needs to get to the bottom of this and someone should be called on the carpet for usurping the authority of the House....

[Little Pharma]

OMG. Your photo post is hysterical. Had to go back to find the tower!!!.....

[anniegetyourgun]

The people who wanted conservatives “out of their bedroom” now want the feds crawling all over their bedroom.

Wonder how they’ll feel about registering & having to show their papers?

[fwdude]

I’m in complete agreement with your assessment of California’s political landscape, but keep in mind that this is a push by the socialists/anarchists in the White House to promote perversion through the federal tax code. Perverts in Nevada and Washington, as community property states, and states that don’t recognize same-sex “marriage,” will also be allowed to split incomes.

It is just a very small step, after DADT is fully implemented, to mandating this nationwide.

[newzjunkey]

A Federal subsidy? Some will pay MORE in taxes, some less. That's not much of a subsidy...

What we see here is a scam: one is paying taxes on income that wasn't theirs and another is not! I don't care if they are "registered domestic partners" or what: if required to file separately they should pay tax on what each alone earned. Under what legislative mandate is IRS allowed or required to make this rule change?

Even heterosexual married couples can file separately which is not often beneficial but if one might be hiding income it offer protection.

It reminds me of the scam that is RUBS (ratio utility billing system) for apts and condos: you pay a calculated proportion of a whole rather than what you actually used. Those who conserve, subsidise the wasters! When we were transitioned to RUBS from pay-for-use our water bill rose 70%.