In the wake of New York’s jubilant celebration of legal same-sex marriage last weekend, some financial experts are now delivering less-than-welcome news for LGBT couples with regards to tax adjustments based on the state’s Marriage Equality Act.
Forbes financial commentator Peter J. Reilly reports that, according to the New York State Department of Taxation and Finance, same-sex couples married in the state of New York must file personal income taxes in concordance with their marital status; however, because such status is not recognized for federal tax purposes, these couples must re-calculate their federal income tax based on their state-recognized marital status for the sake of computing New York state taxes.
The tax law adjustment will thus require same-sex married couples to complete three federal tax returns – two for filing purposes, and one for computing purposes.
Depending on their business, personal, financial and ownership status, New York LGBT couples who choose to take advantage of the state’s new marriage act may thus face complications and confusion come tax season – that is, unless the unconstitutionality of DOMA alters current state and federal tax regulations before April 2012.
Check back for updates as we continue to cover the social, political and financial repercussions of New York’s legalization of same-sex marriage.
