Tax Warrior Chronicles

7/15/2015: In response to this blog, we received comment from one of our readers that the IRS allowed, in his year of marriage, a refund for income taxes paid on imputed income for the period prior to his marriage.  This is in direct contrast to the position IRS representatives have communicated to us, as well as our interpretation of the law. While the IRS is not bound to follow its determinations from one taxpayer to the other, its mission is to apply the law consistently and fairly to all taxpayers. It seems our answer isn’t so definitive after all.  In determining how you will report imputed income on your individual income tax return, you should consider all relevant facts and

Today, as a nation, we celebrate diversity, equality and another huge step forward for civil rights. 

Name changes are usually a result of big events for those involved.  It’s important to notify certain government agencies when you tie the knot, adopt a child and/or change your name due to a gender transition. 

On Friday, January 16, 2015, the U.S. Supreme Court announced it will review an appellate court’s decision to uphold a ban on same-sex marriage. The court’s decision could bring gay marriage to 14 more states and may ultimately determine whether state bans on same-sex marriage are unconstitutional.

Your wedding plans have been in the making for months. Finally, the summer day you’ve dreamed of is almost here. The dress and tuxedo fit beautifully, the weather looks like it will cooperate and the venue could not be more picturesque. So, as Vivaldi’s Four Seasons blares through the air, it’s easy to understand that taxes may not be high on your summer wedding plan checklist. However, marriage is among the most significant of life's transitions. Your tax filing status and other financial planning issues are affected. Taking care of these items sooner rather than later can lead to a worry-free honeymoon!

This time last year, Edie Windsor and same-sex couples across the country were celebrating a momentous win in their struggle for equality. While it was certain whichever way the Supreme Court decided in Windsor v. United States would be landmark, no one knew which way the court would rule, or most surprisingly, how fast change would take effect afterwards.

On May 20, 2014, United States District Judge John E. Jones, III, ruled Pennsylvania’s ban on same-sex marriage unconstitutional in Whitewood v. Wolf, holding that Pennsylvania’s mini-DOMA violates both the Due Process and Equal Protection clauses of the Fourteenth Amendment of the United States Constitution. Judge Jones’ ruling directs Pennsylvania to not only recognize out-of-state same-sex marriages, but also allows same-sex couples to wed within the state.

After the historic June 26, 2013, Supreme Court ruling that Section 3 of the Defense of Marriage Act (aka DOMA) was unconstitutional, many LGBT couples happily committed to legal marriage in 2013 and even more are considering nuptials in the near future.  However, many couples, for a variety of reasons, have not yet taken the plunge.  Our LGBT tax consulting experts have identified several economic and tax considerations LGBT couples may want to quantify when assessing the financial impact of marriage.  This is the first in a series of blogs that will address these issues.  

Since section 3 of DOMA was stricken down in June of this year, an onslaught of new tax decisions have been presented to same-sex couples. Businesses, too, have had to change some processes to accommodate the laws that now include previously unrecognized spouses.  The Tax Warriors^® at Drucker & Scaccetti have been at the forefront of this and other tax-related LGBT issues since well before it became the law of the land. To that end, we thought we’d share the IRS’s new frequently asked questions regarding the taxes of same-sex couples, including three questions regarding payroll taxes with respect to benefits provided by an employer for an employee's same-sex spouse.