Tax Equality Now in Five States--but watch out for federally-imposed workload

Link: EDGE Boston

Excerpt:

If the only two certainties in life truly are death and taxes, GLBT people in five states and the District of Columbia have taken a step that brings them the rest of the way to true equality.

As reported by Business Wire in a Mar. 18 story, the states of CT, MA, and VT have allowed same-sex couples to file their state taxes jointly for a few years now.

Starting this year with the 2007 tax returns, CA and NJ join that trend, along with the District of Columbia.

Business Wire warns that equality, in this case, may bring with it a bit of a headache: as married same-sex couples in MA and partners in civil unions in VA and CT have learned, the 1996 Defense of Marriage Act (DOMA) makes it legal for the federal government to ignore state-granted domestic privileges. State and federal tax returns for couples taking advantage of joint filing in the states that permit it may have to work out their tax bill twice: once to determine what they owe the state as a couple, and again to figure out what Uncle Sam wants from each individual partner.

That cold mean preparing a total of four returns in all, says Business Wire: two federal returns (one for each partner), a mock federal return filled out as if the couple were allowed to file jointly with Uncle Sam, and finally a real state return base don the results of the mock federal return.

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[jw]