After reading both the New York Times article  by Tara Bernard and the comments that followed, I had a mix of emotions, laughter and anger.

On the one hand it’s comical.  Many same-sex partners, whom are married and living in states (CA, NV, WA) that recognize their marriage or Registered Domestic Partnership (RDP), will actually benefit from the new tax laws. Those couples where one partner  earns significantly more then the other, could take advantage of the Combined Community Income (Form 555) filing. They would total their income, split it, and report half each thereby putting the higher earner in a lower tax bracket.  Ms. Bernard used an example of one couple, with one partner earning $82K per year and the other not earning at all, splitting the earnings on separate returns generating a $4800 in tax savings.

I HAD  to see the language on this IRS form. So I pulled it up on the net and right on the cover of IRS Form 555 it states:

This publication is also for registered domestic partners (RDPs) who are domiciled in Nevada, Washington, or California and for individuals in California who, for state law purposes, are married to an individual of the same sex. For 2010, a RDP in Nevada, Washington, California (or a person in California who is married to a person of the same sex) generally must follow state community property laws and report half the combined  income of the individual and his or her RDP (or California same-sex spouse.These rules apply to RDPs in Nevada, Washington, California in 2010 because they have full community property rights in 2010. California RDPs attained these rights as of January 1, 2007. Nevada RDPs attained them as of October 1, 2009, and Washington RDPs attained them as of June 12, 2008. For years prior to 2010, RDPs who  reported income without regard to the community property laws may file amended returns to report half of the community income of the RDPs for the applicable periods, but are not required to do so. If one of the RDPs files an amended  return to report half of the community income, the other spouse.  RDPs (and individuals in California who are married to an individual of the same sex) are not married for federal than tax purposes. They can use only the single filing status, or  the head of household filing status.  

When I see language like this I begin to panic and break into a cold sweat. Certainly Turbo Tax can’t handle this (at least not yet). And I usually use Turbo Tax to do my relatively easy return. Luckily, for tax purposes anyway, I reside in AZ and can’t file my taxes this way.

For the couples living in CA, WA and NV, who do chose to file in this manner, I can’t help wondering if their tax savings won’t go an Accountant who now has to muddle through this maze. And I also can’t help thinking how much time is spent by government workers making up new tax rules that would be totally unnecessary if same-sex marriage were recognized by the federal government. At least President Obama has taken the first step major step towards marriage equality in his position on DOMA. But until same-sex marriage is permitted in all 50 states I hope gay couples in these states will take advantage of whatever tax break you can get.