The state of New York is the latest state to permit same sex marriages, permitting the issuance of marriage certificates to same sex couples beginning July 25th, 2011. The law that permits same sex marriages in New York doesn't require residence and therefore, couples from anywhere in the U.S can go to the state, get married, and go back to their resident state as married couples.
This law, passed in major state in America, is being seen as a major shift for the recognition of same sex marriages in the U.S. There are 6 other states that allow for same sex marriages in the United States. These are Iowa, Connecticut, Massachusetts, Vermont, New Hampshire, Washington, D.C., and now, New York. California had permitted same sex marriages in 2008, but only for a short period before changing back to heterosexual marriages only. However, for the certificates that were issued within this short period in 2008, they still hold as legitimate. There are four other states that allow some form of civil unions for same sex couples.
Same sex marriages have been on the increase in the United States over the years. According to the U.S. Census Bureau for the 2008 census, there were 565,000 same sex couples in that year with only 32,000 being legally married, owning to the fact that only 6 states permitted marrying these couples. According to the same census report, 80,000 of these same sex couples were either registered as legal domestic partners, reciprocal beneficiaries, or as united in a civil union. The majority of the other same sex couples had no legal status.
However, even as same sex couples celebrate the move by New York and other states joining in the permitting of same sex marriages, there are still federal tax issues that remain unresolved or lacking as far as they are concerned. According to the Defense of Marriage Act of 1996, marriage is defined as a union between a man and a woman and the spouses are defined as being of opposite sexes. Therefore, as far as the federal law is concerned, the law doesn't recognize same sex marriages. For taxation, same sex couples can therefore, not file taxes jointly and enjoy the advantages that comes with filing jointly. However, on the other side, same sex marriages do not get into shared responsibility of taxes that are reported jointly, since they file separately. The shared responsibility of taxes has been a major issue for those that file jointly, as the IRS holds both spouses equally responsible for any taxes arising from misrepresented information on the tax returns.
Another major limitation for same sex couples is that they are not shielded from estate taxes, as is the case with the heterosexual couples. The estate law permits married couples to transfer property amongst them with no tax implication and no cap. This is a huge savings, especially for inheritance purposes. However, same sex married couples are not shielded from estate taxes and are expected to pay taxes for property passed from one spouse to another. The married couples are also allowed to share their tax-free gift cap that currently stands at $5 million for the 2011 tax year. This means that together, the couple can give up to $10 million (and this is ideal especially for the couples seeking to pass on wealth to their children as inheritances). However, this advantage is also not available for same sex couples.
However, for the states that allow for same sex marriages, the same sex couples can enjoy state tax benefits and other benefits of married couples, including transfer of workers' compensation benefits to one's spouse when one dies, emergency medical treatment couples rights, public workers pension benefits for spouses, and alimony in case of divorce.
This law, passed in major state in America, is being seen as a major shift for the recognition of same sex marriages in the U.S. There are 6 other states that allow for same sex marriages in the United States. These are Iowa, Connecticut, Massachusetts, Vermont, New Hampshire, Washington, D.C., and now, New York. California had permitted same sex marriages in 2008, but only for a short period before changing back to heterosexual marriages only. However, for the certificates that were issued within this short period in 2008, they still hold as legitimate. There are four other states that allow some form of civil unions for same sex couples.
Same sex marriages have been on the increase in the United States over the years. According to the U.S. Census Bureau for the 2008 census, there were 565,000 same sex couples in that year with only 32,000 being legally married, owning to the fact that only 6 states permitted marrying these couples. According to the same census report, 80,000 of these same sex couples were either registered as legal domestic partners, reciprocal beneficiaries, or as united in a civil union. The majority of the other same sex couples had no legal status.
However, even as same sex couples celebrate the move by New York and other states joining in the permitting of same sex marriages, there are still federal tax issues that remain unresolved or lacking as far as they are concerned. According to the Defense of Marriage Act of 1996, marriage is defined as a union between a man and a woman and the spouses are defined as being of opposite sexes. Therefore, as far as the federal law is concerned, the law doesn't recognize same sex marriages. For taxation, same sex couples can therefore, not file taxes jointly and enjoy the advantages that comes with filing jointly. However, on the other side, same sex marriages do not get into shared responsibility of taxes that are reported jointly, since they file separately. The shared responsibility of taxes has been a major issue for those that file jointly, as the IRS holds both spouses equally responsible for any taxes arising from misrepresented information on the tax returns.
Another major limitation for same sex couples is that they are not shielded from estate taxes, as is the case with the heterosexual couples. The estate law permits married couples to transfer property amongst them with no tax implication and no cap. This is a huge savings, especially for inheritance purposes. However, same sex married couples are not shielded from estate taxes and are expected to pay taxes for property passed from one spouse to another. The married couples are also allowed to share their tax-free gift cap that currently stands at $5 million for the 2011 tax year. This means that together, the couple can give up to $10 million (and this is ideal especially for the couples seeking to pass on wealth to their children as inheritances). However, this advantage is also not available for same sex couples.
However, for the states that allow for same sex marriages, the same sex couples can enjoy state tax benefits and other benefits of married couples, including transfer of workers' compensation benefits to one's spouse when one dies, emergency medical treatment couples rights, public workers pension benefits for spouses, and alimony in case of divorce.
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