Essential Financial Moves for Same Sex Marriages

Same sex partners do joint financial plans just like those who are of different sexes. Therefore, like traditional couples, there are some essential financial moves for same sex marriages and today this article is going to cover what they are.

Taxes

The IRS does offer benefits for those in same sex marriages, including benefits that were not available to them previously. Some of these include employee benefits are not considered taxable compensation, one spouses loss can be used to offset the other spouses gains, they can take advantage of the “marriage benefit”, and federal estates are not applicable to assets that pass to the surviving spouse. The best part is returns for the past three years can be amended so couples can take advantage of these benefits.

The Bad

That was the good news about taxes. However, if the couple resides in a state that does not recognize their marriage the couples will have to file their state returns under a different status. In addition, marrying could cause them to experience the “marriage penalty” instead of the “marriage benefit”.

Conclusion

When you tie the knot with your love, the first thing that has to be on your mind is your finances so you are aware of how tax time is going to go for you. It may not be something you want to think about early own yet it is something that has to be done to insure that tax season is not a headache for you.

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