Same Sex Couples only Thought Marriage was Their Big Government Obstacle
Financial experts say same-sex marriage equality brings pile of new legalese; financial summersaults brought on by state-Federal rift
/EINPresswire.com/ Denver, CO August 17, 2011 -
In New York, the honeymoon has just started for same-sex newlyweds. For these same-sex couples, champagne, bonhomie and the express good will of friends are the icing on the cake after their decades-long push for gay equality in New York. However, financial and legal experts say same-sex couples are poised to deal with a myriad of new issues when it comes time to make difficult life decisions, as the Federal government doesn't officially recognize same-sex marriages.
Death and taxes doubly certain for same-sex couples
Newlyweds in New York will be able to file their taxes in New York State as jointly or married. Only one of the pair can claim head of household for Federal Taxes, but neither can claim married. And that's just where the problems start, say experts.
New York issues tax returns based on what the
Federal Government grants the filer. In other words, in order to get a New York tax return, one has to have a Federal income tax return. As legally married in New York, and unrecognized at the Federal level, this presents a massive bureaucratic headache, but one that tax-services are remedying through extra-legal means.
In order to surmount this tax-filing conundrum, couples have to file their official tax return as 'unmarried' with the Federal government and then file an unofficial, dummy Federal tax return as married. Only in this way can same-sex newlyweds in New York State supersede the Federal Government's alternative tax code.
Because the IRS, by law, must follow the Defense of Marriage Act, same-sex couples will have to indicate why their state and Federal marital status is different.
LGBT activist say legal disparity costly and speaks to pervasive inequality
In the eyes of the gay community and many same-sex partners, these Federal-state legal disparities within the tax code speak to deeper, pervasive inequality and are the real heart of the LGBT Civil Rights Campaign. Under New York law, same-sex partners are financially and legally equal. Once accountants and lawyers cross the fence into Federal territory, compound legal matters become expensive and murky. LGBT activist are pushing for full financial equality, which they believe is apropos unconditional social equality for gays and lesbians.
In sickness and in wealth
Because the Federal Government does not recognize same-sex marriages, spousal insurance is taxed as employee income. Same-sex couples cannot collect on their spouse's social security benefits and do not have any legal right to their spouse's retirement account.
When a spouse inherits an individual retirement account—an IRA—they cannot capitalize on fringe benefits, like delaying distributions and tax-deferred compounding, or other financial advantages heterosexual couples are allowed. Financial experts in and outside of the gay community have indicated this could lead to huge net losses for same-sex couples. What's more, they say, IRAs are essentially designed to be nest eggs, so if one partner is the primary breadwinner, the other stands to be in the poor house at his or her partner's death.
The expenses of equality
There are more than a few stories of longtime partners abandoning the wedding aisle at the 11th hour because they were unaware of the financial obligations married couples have. The words in sickness and in health have legal resonance, too: married couples are financially bound by law to support a spouse if he or she falls on hardship like job loss, illness or disability. This possibility of onerous emotional and financial burden resulting from illness or accident has lead some same-sex couples to reconsider walking down the aisle.
In New York State and other parts of the country where same-sex marriage has been legalized, financial experts are ready to assist same-sex couples with the myriad of financial issues generated by compound Federal-state legal disparities. Many gay-friendly businesses and gay-advocacy groups have provided leadership and expertise on issues specific to LGBT identifiers. For instance, many same-sex couples are utilizing gay advocacy resources like GayRealEstate.com to address domestic issues, like buying a home, taking out a mortgage or paying your taxes. Gayrealestate.com specializes in servicing LGBT clients with the process of buying a home and has been in the gay-friendly real estate business for twenty years.
Gay-friendly services ready to assist newlyweds
Their fortunes freshly united, New York same-sex newlyweds may be eating wedding cake, but they are preparing for the financial conundrums that lie ahead. Financial advisers, pastors, lawyers and online organizations such as www.gayrealestate.com are bracing for the influx of newlyweds expected now that same-sex marriage is legal in New York. These services have overwhelming suggested that same-sex partners consult experts early and often when it comes time to get married or buy a home.
Contact Information:
Jeff Hammerberg
Founding CEO
Hammerberg & Associates, Inc.
6235 E. 6th Avenue Parkway
Denver, CO 80220 USA
manager@gayrealestate.com
303-321-7653
PR Courtesy of Press Release Distribution dot com
/EINPresswire.com/ Denver, CO August 17, 2011 -
In New York, the honeymoon has just started for same-sex newlyweds. For these same-sex couples, champagne, bonhomie and the express good will of friends are the icing on the cake after their decades-long push for gay equality in New York. However, financial and legal experts say same-sex couples are poised to deal with a myriad of new issues when it comes time to make difficult life decisions, as the Federal government doesn't officially recognize same-sex marriages.
Death and taxes doubly certain for same-sex couples
Newlyweds in New York will be able to file their taxes in New York State as jointly or married. Only one of the pair can claim head of household for Federal Taxes, but neither can claim married. And that's just where the problems start, say experts.
New York issues tax returns based on what the
Federal Government grants the filer. In other words, in order to get a New York tax return, one has to have a Federal income tax return. As legally married in New York, and unrecognized at the Federal level, this presents a massive bureaucratic headache, but one that tax-services are remedying through extra-legal means.
In order to surmount this tax-filing conundrum, couples have to file their official tax return as 'unmarried' with the Federal government and then file an unofficial, dummy Federal tax return as married. Only in this way can same-sex newlyweds in New York State supersede the Federal Government's alternative tax code.
Because the IRS, by law, must follow the Defense of Marriage Act, same-sex couples will have to indicate why their state and Federal marital status is different.
LGBT activist say legal disparity costly and speaks to pervasive inequality
In the eyes of the gay community and many same-sex partners, these Federal-state legal disparities within the tax code speak to deeper, pervasive inequality and are the real heart of the LGBT Civil Rights Campaign. Under New York law, same-sex partners are financially and legally equal. Once accountants and lawyers cross the fence into Federal territory, compound legal matters become expensive and murky. LGBT activist are pushing for full financial equality, which they believe is apropos unconditional social equality for gays and lesbians.
In sickness and in wealth
Because the Federal Government does not recognize same-sex marriages, spousal insurance is taxed as employee income. Same-sex couples cannot collect on their spouse's social security benefits and do not have any legal right to their spouse's retirement account.
When a spouse inherits an individual retirement account—an IRA—they cannot capitalize on fringe benefits, like delaying distributions and tax-deferred compounding, or other financial advantages heterosexual couples are allowed. Financial experts in and outside of the gay community have indicated this could lead to huge net losses for same-sex couples. What's more, they say, IRAs are essentially designed to be nest eggs, so if one partner is the primary breadwinner, the other stands to be in the poor house at his or her partner's death.
The expenses of equality
There are more than a few stories of longtime partners abandoning the wedding aisle at the 11th hour because they were unaware of the financial obligations married couples have. The words in sickness and in health have legal resonance, too: married couples are financially bound by law to support a spouse if he or she falls on hardship like job loss, illness or disability. This possibility of onerous emotional and financial burden resulting from illness or accident has lead some same-sex couples to reconsider walking down the aisle.
In New York State and other parts of the country where same-sex marriage has been legalized, financial experts are ready to assist same-sex couples with the myriad of financial issues generated by compound Federal-state legal disparities. Many gay-friendly businesses and gay-advocacy groups have provided leadership and expertise on issues specific to LGBT identifiers. For instance, many same-sex couples are utilizing gay advocacy resources like GayRealEstate.com to address domestic issues, like buying a home, taking out a mortgage or paying your taxes. Gayrealestate.com specializes in servicing LGBT clients with the process of buying a home and has been in the gay-friendly real estate business for twenty years.
Gay-friendly services ready to assist newlyweds
Their fortunes freshly united, New York same-sex newlyweds may be eating wedding cake, but they are preparing for the financial conundrums that lie ahead. Financial advisers, pastors, lawyers and online organizations such as www.gayrealestate.com are bracing for the influx of newlyweds expected now that same-sex marriage is legal in New York. These services have overwhelming suggested that same-sex partners consult experts early and often when it comes time to get married or buy a home.
Contact Information:
Jeff Hammerberg
Founding CEO
Hammerberg & Associates, Inc.
6235 E. 6th Avenue Parkway
Denver, CO 80220 USA
manager@gayrealestate.com
303-321-7653
PR Courtesy of Press Release Distribution dot com