Tax Information About Same-Sex Marriage

IRS YouTube Video:

IR-2014-22, March 6, 2014

Following last summer’s Supreme Court decision invalidating a key provision of the Defense of Marriage Act, the IRS ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, are now treated as married for federal tax purposes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.

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WHAT’S THE CORRECT TAX FILING STATUS FOR CALIFORNIA GAY AND LESBIAN COUPLES?

LGBT TAX EXPERTS

Tax Expert Same sex marriage Avo Asdourian, Tax Expert Same sex marriage

         Before you know it, April 15 will be upon us.   How would LGBT couples of California residents know what family status to take?

Although the state of California currently recognizes same sex marriage as legal, Gay and Lesbian couples still have the option to file as Registered Domestic Partners (RDP).  “As 2014 is the first year gay and lesbian couples can file as married couples, here are a few tips that might help LGBT couples decide which status best fits their needs.” said Avo Asdourian, EA Legal Tax Representative to the IRS.  LGBT couples can always take great benefit in consulting with Avo on their taxes especially when things get complicated and overwhelming. It’ easy to contact Avo either through this blog or when you click here. Contact Avo.

           As with the federal…

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WHAT’S THE CORRECT TAX FILING STATUS FOR CALIFORNIA GAY AND LESBIAN COUPLES?

Tax Expert Same sex marriage

Avo Asdourian, Tax Expert Same sex marriage

         Before you know it, April 15 will be upon us.   How would LGBT couples of California residents know what family status to take?

Although the state of California currently recognizes same sex marriage as legal, Gay and Lesbian couples still have the option to file as Registered Domestic Partners (RDP).  “As 2014 is the first year gay and lesbian couples can file as married couples, here are a few tips that might help LGBT couples decide which status best fits their needs.” said Avo Asdourian, EA Legal Tax Representative to the IRS.  LGBT couples can always take great benefit in consulting with Avo on their taxes especially when things get complicated and overwhelming. It’ easy to contact Avo either through this blog or when you click here. Contact Avo.

           As with the federal tax return, California allows same -sex couples to take the standard deduction for the taxpayer’s filing status or to itemize deductions. Choosing the larger of these two amounts will result in the lower tax.  

 

California standard deduction is $3,906 for single and married/RDP filing separate.

California standard deduction is $7,812 for married/RDP filing joint, head of household, and qualified widow(er).  

 

Taxpayers may itemize deductions on the federal return and claim the standard deduction on the California return, or, conversely, claim the standard deduction on the federal return and itemize deductions for California. 

california

For federal tax purposes, registered domestic partners are considered single.  If one itemizes, the other is not required to itemize.

 

For California returns, if the partners file using the married/RDP filing separate status, both must itemize deductions or both must take the standard deduction.

 

For California returns, if partnes file as married/RDP filing joint, use the more advantageous amount – standard deduction or itemized deductions.   Be sure to include both partners’ expenses when computing the itemized amounts.

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On Monday, The White House and the U.S. Small Business Administration announced an expansion of President Obama’s SupplierPay initiative, a partnership with the private sector to strengthen small businesses by increasing their working capital, so they can grow and hire more workers.

https://www.sba.gov/blogs/21-more-corporations-take-supplierpay-pledge

 

21 More Corporations Take SupplierPay Pledge

By Maria Contreras-Sweet, SBA Administrator
Published: November 18, 2014Updated: November 18, 2014

This July, I stood alongside President Obama at the White House and announced a vital new partnership between the government and private sector to strengthen America’s small businesses by increasing their access to affordable working capital. SupplierPay is about paying small suppliers on time and keeping their interest rates low, so they can invest in new equipment, new products and new people.

Twenty-six U.S. corporations took the SupplierPay pledge this summer, and yesterday 21 additional corporations signed on. Jeff Zients, director of the National Economic Council, and I joined together at the White House to recognize these companies for their commitment to grow our economy.

When companies do not pay their small suppliers promptly, the impact is felt at the community level. Small suppliers must find alternative financing options, which can mean layoffs or raising prices to the detriment of their loyal customer base.

SupplierPay is a win-win.  It’s a win for small businesses because they gain payment certainty that allows them to plan for growth. That could mean hiring full-time employees with health benefits, instead of relying on more expensive contract labor.  Or it could mean investing in new products and better processes that will improve their bottom line.

SupplierPay is also a win for U.S. corporations. Providing payment certainty to small businesses means corporate buyers will get higher-quality goods and services and pay less for them.  We’re competing in a global economy, and strong, nimble supply chains give American companies a competitive edge.

Small firms create 2 out of 3 new jobs in America and account for half of all private-sector employment. Approximately one-quarter of our small businesses are firms that primarily supply other firms. Entering corporate supply chains allows the average small business to grow its revenue by 250 percent and its workforce by 150 percent. SupplierPay is an initiative that goes to the heart of our economy’s growth potential.

Manzi Metals in Florida is the only black-owned, woman-owned metals distribution company in the country. Barbara Manzi started her company 25 years ago and it’s now a multi-million dollar enterprise supplying some of the largest companies in the world, including the Department of Defense and NASA.

After the financial crisis, many of Barbara’s clients extended their payment windows substantially, depriving her of the working capital she needed to scale up and innovate. Now, two of her largest clients, Lockheed Martin and Rolls Royce, have joined the SupplierPay movement, allowing Manzi Metals to start hiring and innovating again.

That’s the power of SupplierPay.

Going forward, SBA will be convening a working group to share best practices. Faster payments are just one way to get affordable working capital to our entrepreneurs.  We will study other methods and share them, so companies can choose a financing strategy that makes sense for them.

But today, we salute the trailblazers in this movement. By supporting America’s small businesses, these companies are supporting local jobs and local communities – and our economy and our country will be stronger for it.sba

 

 

Tim Cook Says He is “Proud to Be Gay”

Apple

Apple CEO Tim Cook confirmed Tuesday that he identifies as gay, and in doing so instantly becomes the most prominent openly gay business executive.

“While I have never denied my sexuality, I haven’t publicly acknowledged it either, until now,” Cook says in an essay for Bloomberg BusinessWeek. “So let me be clear: I’m proud to be gay, and I consider being gay among the greatest gifts God has given me.“

Over the past couple of years Cook has taken a number of strong positions in favor of LGBT rights, but had chosen not to discuss his sexuality.

“I don’t consider myself an activist, but I realize how much I’ve benefited from the sacrifice of others,” Cook writes in the essay. “So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it’s worth the trade-off with my own privacy.”

Last year, he gave a poignant speech at an event for his alma mater, Auburn University, in which he talked about experience discrimination firsthand as he grew up, though he did not get into specifics.

He also wrote an op-ed for the Wall Street Journal calling on Congress to outlaw job discrimination on the basis of sexual orientation or gender identity.

Though Cook had not publicly declared his sexuality until now, Out magazine already hadnamed him to its “Power List” of LGBT executives.

LGBT couples will file with IRS as married couples

Tax Issues of Same-Sex Marriage

Now that the law for same-sex marriage is legal in the eyes of the federal government, same-sex married couples can now file joint tax returns which could benefit the taxpayer or make things worse.

Although State Tax Laws differ, the Federal Government, IRS,  recognizes same-sex marriages as legal and are liable to filing taxes within the same acceptable parameters of the IRS rules and regulations as intended for all married couples and families.

Aug. 29, 2014 the Treasury Department and Internal Revenue Service announced that same-sex married couples, regardless of where they live, will be recognized as married for federal tax purposes. The law says that as long as the couple was legally married in a jurisdiction that sanctions the weddings, they are married in Uncle Sam’s tax eyes even if they later move to a state that does not recognize same-sex marriages.

Jurisdictions that recognize same-sex marriages

States for same sex marriage

*These jurisdictions also allow domestic partnerships.

 

Here is what you should know about filing a federal return

1.   Find a tax preparer who knows how to run numbers several different ways for the benefit of the tax-payer.

-Whether it is filing jointly, filing separately, single or head of the household, based on your income and on your exemptions and deductions, the preparer should know where you benefit the most and advise you accordingly.

2.  In addition to running your numbers several different ways, your tax preparer should have the knowledge to recommend a structure to benefit your filing status for the future.

-Advising isn’t every tax preparer’s duty nor capability. Find someone who knows how to restructure and advise for the benefit of the taxpayer.

 

With LGBT Tax Experts, Avo Asdourian is THE professional to guide you and file your taxes for the tax payers’ benefits.

You can reach Avo at (818) 934-0578