How does federal tax filing work if you are gay married?

[her209]

Say you live in a state that recognizes gay marriages. You file as "Married filing jointly" on your state income tax. What happens if you file "Married filing jointly" on your federal income taxes since the government doesn't consider you as married? FPMITA prison?

 

[Fern]

The IRS would likely just change it to two tax returns filed as "single". If they both work it likely wouldn't cause much, if any, tax increase.

In any case, the chances of it being caught by the IRS are close to zero.

Fern

 

[Infohawk]

Is there some political point or news story hiding in this question?

 

[GuitarDaddy]

Say you live in a state that recognizes gay marriages. You file as "Married filing jointly" on your state income tax. What happens if you file "Married filing jointly" on your federal income taxes since the government doesn't consider you as married? FPMITA prison?

What? and reward them for breaking the law 😀

 

[amish]

What happens if you file "Married filing jointly" on your federal income taxes since the government doesn't consider you as married? FPMITA prison?

fern is right. IRS will recalculate the return as two separate returns with a single status on both.

if the IRS really wanted to be dicks they could put penalties on the return for filing a fraudulent return. it wouldn't happen though as the backlash would be too great.

they get pissy if you file a return and the occupation that you fill in isn't what you actually do.

 

[Jhhnn]

The IRS would likely just change it to two tax returns filed as "single". If they both work it likely wouldn't cause much, if any, tax increase.

In any case, the chances of it being caught by the IRS are close to zero.

Fern

Why would they change anything? Now that DOMA is abandoned, the traditional right of States to define marriage & the IRS accepting their definitions should return to normal. That has always varied state to state, but the IRS never cared.

Here in Colorado, for example, any hetero couple who represents themselves as married *are* married in every legal sense. Other states have much more strict requirements, but the IRS recognizes both. I suspect it should work the same for gay marriage.

Edit- http://online.wsj.com/article/SB10001424052748704080104575286931017169308.html

Google "gay marriage IRS"

 

[rudder]

Until gay marriage is recognized by the federal government, you will likely have a higher tax bill than you thought. If your name is on the return you are responsible for it's accuracy. Should you submit a return showing you are married and you are not... you will be responsible to pay the difference plus interest, plus fees.

really... this topic needed a thread?

 

[her209]

Is there some political point or news story hiding in this question?

There was no story hiding behind this question but if you want one, I found this one:

http://www.npr.org/2011/04/12/135338638/irs-entangled-in-gay-marriage-debate

 

[her209]

fern is right. IRS will recalculate the return as two separate returns with a single status on both.

if the IRS really wanted to be dicks they could put penalties on the return for filing a fraudulent return. it wouldn't happen though as the backlash would be too great.

they get pissy if you file a return and the occupation that you fill in isn't what you actually do.

Apparently in California, the IRS has decided to treat gay couples "equally" as heterosexual couples...

http://online.wsj.com/article/SB10001424052748704080104575286931017169308.html

 

[piasabird]

There are some itemized deductions you can not claim if you are single. Also a lot of things like IRA deductions are higher if you are married. It just makes a Roth IRA a better idea anyway.

So if you lie on your Federal Tax Return, does that make you a felon? It is one thing to omit some income by mistake, and an entirely different issue to out and out lie to get a better tax deal! This would be called fraud. Based on some of the appointed officials nominated by the President, I would say that being a tax cheat is not a felony. I guess they just freeze you bank account and steal all your assets.

 

[sportage]

States with SS marriage "require" SS either file "married filing jointly" or "married filing separately". Then on the fed, they must only file as single.
This alone is one reason SS marriage needs to be law of the land.
State recognized SS marriage is .... ok.... BUT, you can see the confusion with taxes alone. And the confusion only gets worse from there.
My sis does a lot of taxes for friends and relatives. She usually uses the programs TurboTax, taxact or H&R block (which I think was bought out by TurboTax?).
Anyway... the programs get confused. If she starts off doing the state filing "married filing jointly or married separately", for SS married people, then when it goes into the state section the program complains "you made an error". Wanting to either change filing on the federal to "married" or on the state as "single".
So she has to file the federal, and complete that. Then do the state totally separately.
You'd think TurboTax and the others would realize SS marriage is now a factor of life.

 

[amish]

Apparently in California, the IRS has decided to treat gay couples "equally" as heterosexual couples...

http://online.wsj.com/article/SB10001424052748704080104575286931017169308.html

hmmmmm, i'm going to go with IRS publications, specifically Pub 555, over a poorly researched WSJ article.

RDPs (and individuals in California who are married to an individual of the same sex) are not married for federal purposes. They can use only the single filing status, or
if they qualify, the head of household filing status.

see page 2. http://www.irs.gov/pub/irs-pdf/p555.pdf

 

[amish]

There are some itemized deductions you can not claim if you are single.

have any documentation to back that up? The instructions for Schedule A, itemized deductions, don't agree with you. http://www.irs.gov/pub/irs-pdf/i1040sca.pdf

Also a lot of things like IRA deductions are higher if you are married.

huh? every individual that contributes to a traditional IRA, and is allowed a deduction, will receive the same amount of deduction ($5,000, not going into the increased age deduction) no matter if they are single or married.

So if you lie on your Federal Tax Return, does that make you a felon? It is one thing to omit some income by mistake, and an entirely different issue to out and out lie to get a better tax deal! This would be called fraud. Based on some of the appointed officials nominated by the President, I would say that being a tax cheat is not a felony. I guess they just freeze you bank account and steal all your assets.

under Title 26 USC § 7201(1), you are a fraud and felon.

"Any Person who… (1) Declaration under penalties of perjury - Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; shall be guilty of a felony and, upon conviction thereof;

*Shall be imprisoned not more than 3 years
*Or fined not more than $250,000 for individuals ($500,000 for corporations)
*Or both, together with cost of prosecution"

 

[Jhhnn]

That IRS publication refers only to the peculiarities of community property states, and actually confers tax advantages onto same sex couples (RDP's & married) whose incomes are not very high in total. If one partner makes $70K, & the other makes $0, they pay federal taxes on $35K apiece. It also avoids the "marriage penalty" some high earning couples need to pay...

It doesn't address non community property states at all.

 

[amish]

That IRS publication refers only to the peculiarities of community property states, and actually confers tax advantages onto same sex couples (RDP's & married) whose incomes are not very high in total. If one partner makes $70K, & the other makes $0, they pay federal taxes on $35K apiece. It also avoids the "marriage penalty" some high earning couples need to pay...

It doesn't address non community property states at all.

it wasn't meant to combat the advantages of taxation of individuals living in community property states. it was meant to show that individuals living in california and other community property states must still file a federal return with the "single" filing status.

1040 instructions state, "For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife." this covers all non community property states and was mentioned before. http://www.irs.gov/instructions/i1040/ar01.html#d0e1859