Taxes are gay
Unequal Taxation and Undue Burdens for LGBT Families
The Bottom Line
Millions of American families led by parents who are womxn loving womxn, gay, bisexual or transsexual (LGBT) face unequal and inflated tax burdens and tax filing so complicated even accountants cannot always advise them.
Unequal Taxation and Undue Burdens for LGBT Families provides a groundbreaking, in-depth look at the income tax inequities faced by LGBT families, illustrating how many tax exemptions, credits and deductions crafted to help families ease the financial burdens of raising children are occupied to families with LGBT parents. The report also documents how, because LGBT families are denied federal recognition of their marriages and denied joint filing status due to the Defense of Marriage Execute (DOMA), they face higher taxes on family health insurance benefits and additional gift and estate tax liability—and must misrepresent and “carve up” their families when filing taxes with the Internal Revenue Service (IRS). Unequal Taxation and Undue Burdens for LGBT Families also outlines recommendations for amending and repeal
American Foundation for Equivalent Rights
On Thursday, the Treasury Department announced that all married gay and womxn loving womxn couples, regardless of where they exist in the U.S., will be treated as married for all purposes of tax law.
This policy is in incredibly important for a number of reasons. First, it makes it crystal clarify that federal tax laws and policies apply to all married couples, regardless of where they live. Second, it will greatly decrease confusion for queer couples and their employers, especially for those people who work in one state and survive in another. Third, it erases much of the “gay tax,” whereby married gay and female homosexual couples in states with marriage equality were treated as legal strangers for their federal taxes. In many cases, this was could amount to thousands of dollars in additional taxes with fewer rights.
While there is still a long way to go to secure couples and families in 37 states have the declare recognition they are entitled to, the new tax policies of the federal government will ease a great burden for many homosexual and lesbian couples and their families, especially around tax season.
Here are six things you want to know about the new decree, ac
The Gay Tax
As the Supreme Court considers two cases that could lead to unprecedented rulings on the right to marriage equality, I’ve been paying next to attention. For me, the national conversation about this civil right hits especially close to abode because I’m the daughter of two strong and courageous women.
People always seek what it’s enjoy growing up with two moms, and I always retort the same way. Instantly defensive, I say that growing up with two moms isn’t unlike at all. I was lucky to have two loving parents and their parenting — not their gender — is what made the biggest difference in my upbringing.
And I mean it. But the truthfulness is, it’s also different — the differences are just harder to speak about. Having two moms means that people question my sexuality and my brother’s sexuality. It means that people question the way I was raised. It means that people feel justified in openly discussing their opinions about my personal existence. It means having to consciously determine in every brand-new group whether to cautiously mention “my moms” or to safely and cowardly stick with “my parents.” It means hiding part of my identi
Washington and Lee Law Review
Abstract
The Internal Revenue Code (the Code) contains numerous special rules applicable to the income taxation of persons related by marriage, birth, adoption, or ownership. This Article suggests a new approach to their analysis. Many basic tax rules assume that taxpayers are self-interested and unaffiliated. Where this assumption is incorrect, the Code makes adjustments to its otherwise applicable rules. Most of the resulting related-party antiavoidance rules apply only in the context of specified formal relationships-marriage, parent/child, or owner/business. The Article tests this thesis by comparing the income tax treatment of heterosexual married couples with that of gay couples in committed long-term relationships. Queer couples are not married for tax purposes, nor are they spouses within the meaning of the Code. Gay marriage therefore never by itself invokes any related-party rules. The Article explores a series of tax avoidance problems in the contexts of marriage and extended families. None of the relevant anti-abuse rules apply to gay spouses. As a result, gay couples should be able to arrange their affairs so as to disburse federal income