Monday, December 27, 2004

Got Scot?

In the transition in Massachusetts marriage law, same-sex couples get state tax breaks this year, but still have to file old-style, single federal forms. With no U.S. law recognizing their marriages, they fall under an odd set of tax regulations.

Fundamentally, they have to create two separate federal income-tax filings. One is the basis for their derived state taxes, and the other set for the U.S. ones.

Likewise, benefits, such as health insurance for a spouse are pre-tax and tax-free in Massachusetts, where the couples are married. The Feds keep them taxable.

No one seems ready to file jointly with the federal forms and start the legal action.

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