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What You Need to Know About Same Sex Marriage and Taxes in Santa Clara, CA

What You Need to Know About Same Sex Marriage and Taxes in Santa Clara, CA

 If you are in a same sex marriage, you can start enjoying the tax benefits that come along with it. Before you start claiming any deductions or credits, it helps to make sure you qualify for them. If you are not knowledgeable in the tax field, it is recommended that you have a professional tax agent working alongside of you. Below, we will go over some tax information to help you prepare for your 2016 taxes. 

1. File Jointly When It Makes Sense

Now that same sex couples can file jointly, take advantage of it when it makes sense. In fact, in 2015, the difference between filing single and jointly saved couples thousands of dollars in taxes.

In fact, if you are in a civil union, then you are required to file under the married status on your tax return. If the two of you choose to file separately, then you may face a penalty.

2. Give a Gift and Don’t Be Afraid

Same sex married couples can now give each other cash gifts without the worry of being taxed. Previously, the benefit was not recognized because same sex marriage was not.

Not incurring a penalty and not being taxed means that you can spread the love back and forth without the worry of a giant tax bill at the end.

3. Support Not a Taxable Gift Anymore

Previously, if you were paying out alimony in a same sex relationship, the amount of money received was considered a taxable gift. Now, it is considered a tax deduction and can be claimed on your taxes. This is a huge difference and can help lower the amount of taxes you end up paying in the end.

4. Offset Your Losses and Gains

In prior years, when a spouse in a same sex relationship experienced a gain or a loss, it was theirs. Now, same sex couples can offset each other’s gains and losses with the other ones.

For example, if one spouse had a gain of $45,000 and the other a loss of $25,000, the gain can help offset the amount of the loss. To do this, the couple will need to combine both the loss and gain together.

5. Amend Your Old Returns

If you were previously unable to file jointly, speak with a tax professional today. It is likely that you can go back and amend the previous returns to read married filing jointly.

If it is possible to amend your returns, the amount of tax you owe could drop significantly and this would result in a refund for you.

6. Healthcare Plans

Previously, same sex couples were not able to share a health account plan through an employer since the couple was not considered married. Now, same sex couples can receive the same benefits others do when it comes to health plans, insurance, and flexible spending accounts.

Instead of having multiple benefit plans, you can have a single one where both of you are listed as insured.

Final Thoughts on Same Sex Marriage and Taxes

If you are in a same sex marriage, it is important you know all of the laws and regulations regarding taxes. While it is almost impossible to learn this information in time for taxes, you can rely on a tax agent to help you file appropriately.

Tax agents in Santa Clara, CA are knowledgeable about the laws, regulations, and deductions for all same sex couples. You will find that with the help of a tax professional, you can lower your tax bill while maximizing the refund you receive.

Remember, you never want to try and claim a deduction or credit unless you are sure that you are able to. If you do not know if you qualify, speak with your tax agent now.

Need help with your taxes? Click on the picture below to be connected to one of our live tax agents. We look forward to helping you and getting you on the right track with your 2016 taxes.

The Goldberg Tax Practice, LLC
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