The Same-Sex Marriage Penalty

[Frankly Rich]

First, let no one think I am writing this to whine or seek sympathy, pity, or scorn, for that matter. I write to inform, and maybe, even hopefully, to find out that I am wrong.

For years I have heard of the so-called marriage penalty, but did not become intimately familiar with it until recently. The bf and I had it wonderful as domestic partners. Since my income is higher than his, as domestic partners in California we were allowed by the IRS to split income I had that would qualify as community property. This had the effect of lowering our taxes, as he was in a much lower bracket, and getting this half of some of my income was taxed lower.

 

But, no more. I was shocked when doing my taxes that we owed thousands. It seems that being married changed the equation, and we were taxed differently on essentially the same income as last year. I want a divorce! I'd give more details to help you figure this out, but then I'd be revealing information not mine to reveal.

Being domestic partners was sure cheaper. (They'll probably correct that when they read this.) I am told that marriage has its other benefits, like what?

[Irtwo]

You can be married and still file separately.

[+ Robster]

Married filing separately is the worst way to go. It almost never works to your advantage.

 

Wayne and I have similar incomes, so we weren't penalized when we started filing jointly. And I love seeing both of our names on that tax return.

 

Rob

[Frankly Rich]

I did my own taxes, first trying the join return, then the separate returns. The taxes filing separately were about 1/3 lower than filing jointly. Yet I have decided to have a professional take a second look for me as I am not trusting my own work anymore! Fifty years I have done my own taxes, and now this!

[thickornotatall]

My opinion....civil or domestic is the way to go....my partner and I have spent good deal of time and money with attorneys..setting up trusts and right of survivorship...hospital...medical....banking...stocks...all covered....we aren't interested in marriage but did domestic in NYC...I am not interested in paying more taxes or having our photos in The NY Times....happy and civil....most of the time...

[instudiocity]

Sorta curious why the OP chose to include "same-sex" in his title to this thread. There has been a 'marriage penalty' in the tax code for at least 50 years. Hetero married folks been paying it a long time.

 

One could say that with the privilege of marriage come certain requirements including funding the government disproportionately. Reagan's Tax-Reform of 1986 while not eliminating this penalty lowered the cost to $0, but as Time goes on Congress and Presidents chose to rejigger the Tax Code so married folks paid the penalty once again.

 

As gay marriage advocacy ramped up, I often thought, "You don't really know the full consequences of what you're asking."