tax code

IRS moving to give homosexuals the "married" treatment

Despite the existence of the 1996 federal Defense of Marriage Act, the IRS is moving to treat homosexual couples to some of the same tax benefits of legally married couples under a new ruling that overturns a previous ruling on the same subject during the Bush Administration.  (via WSJ)

The Internal Revenue Service has ruled that same-sex couples must be treated the same as heterosexual couples under a feature of California tax law. Advocates for the change say it is the first time the agency has acknowledged gay couples as a unit for tax purposes.

The change reverses a 2006 IRS ruling and opens a tax benefit to many same-sex couples that wasn't available before. It may affect couples in Nevada and Washington state, as well.

Specifically, the agency said nearly 58,000 couples who are registered as domestic partners in California must combine their income and each report half
of it on their separate tax returns. Same-sex couples account for an
estimated 95% of the state's domestic partnerships; partnership status
is also available to heterosexual couples in which one partner is over
age 62. ...

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