FOR IMMEDIATE RELEASE

January 3, 2005

GLAD Flags Tax Issues for Married Same-Sex Couples

(Boston, MA) With the turn of the year, many people’s thoughts turn to income taxes. For more than 4,200 same-sex couples who married in Massachusetts in 2004, filing this time around is presenting new challenges.

Gay & Lesbian Advocates & Defenders (GLAD), the legal organization that won the landmark marriage suit, is drawing attention to the legal quandary married same-sex couples may find themselves in as they file their state and federal tax returns.

“Due to the federal government’s discrimination against married same-sex couples, couples will be forced to file their federal income taxes as though they are single,” said GLAD staff attorney Karen Loewy. “Nonetheless, when they file, couples should consider designating in some way that a marriage has occurred.”

Filing in this way will likely help avoid penalties for underpaying taxes, while simultaneously ensuring that neither spouse denies the validity of their marriage. It could also prevent others – such as lenders – from using the designation of ‘single’ on the federal tax return to argue that a person is not married when the issue arises in other contexts.

For purposes of filing state income tax returns in Massachusetts, there should be no question that married couples will be treated as married, and thus after filing their federal tax returns as single, they may need to recalculate the couple’s joint income as married for purposes of the state return.

Other issues for couples to consider are the ways in which employment benefits provided to a same-sex spouse are taxed; and the implications of state and federal tax differences regarding gift and estate taxes.

In order to walk couples through some of the complications, GLAD has issued two new publications: “Navigating Income Taxes for Married Same Sex Couples” and “Taxes on Employment Benefits for Same-Sex Spouses” They are both available on GLAD’s web site, www.glad.org.

GLAD is strongly advising couples to contact their own attorney or tax professional for assistance specific to their own situation. Individuals or their tax professionals should feel free to call GLAD’s hotline (617-426-1350, M-F, 1:30-4:30 pm) for further assistance.