Thursday, Mar. 26, 2009
a taxing time of year
I’ve already filed my taxes this year. My only concern now is whether I use my refund on some much-needed home improvement projects or keep it tucked away in my bank account as a safety net in this troubled economy. I’ve never been too investment-savvy and often find myself living from paycheck-to-paycheck. So, the safety net, even though mine will resemble that of a butterfly catcher, is looking like the best option.
For many, just the mention of W2s and 1099s bring about anxiety and confusion. Taxes can be difficult enough for our straight peers, but for gay couples in a domestic partnership the issues can be even more daunting. So if you’re still procrastinating or just trying to make sense of it all, here are a few things to consider before handing over your hard-earned money to the government.
First off is the tax rate. Sometimes it is more beneficial for couples to file jointly than separately. I ran some quick tests on www.hrblock.com and the differences I found were minimal, if any. But with legislators like those in South Carolina wanting to make a statement regarding traditional marriage and push for more tax breaks for married hetero couples, this could change by 2010. Rep. Bob Leach, R-Greenville said “South Carolina defines marriage as the union of one man and one woman, and we believe a strong family unit is important to our state,” in a press release issued by the S.C. Republican Caucus last year pushing for the bill.
One of the biggest disparities at tax time centers on domestic partner benefits. For instance, my company offers domestic partner benefits to same-sex couples, including health insurance. Guess what? If I chose to utilize those benefits I would be taxed on the value of them at the end of the year. This is also true in states that actually allow same-sex marriage, because the Defense of Marriage Act requires that those couples file individual federal returns. DOMA denies federal recognition of same-sex relationships for more than 1,000 federal protections, including benefits such as insurance, annuities, pension plans and Social Security. Those benefits for opposite-sex couples are excluded from their gross income. I’m hopeful that this may change though. President Obama was a co-sponsor of the Senate legislation proposed in 2007 that would have made these and other benefits tax-free.
Married same-sex couples in Massachusetts recently filed a joint lawsuit against the federal government, claiming the act discriminates against gay couples and is unconstitutional because it denies them access to these and other federal benefits that other married couples receive. Among the plaintiffs are Mary Ritchie, a Massachusetts State Police trooper and Dean Hara, the widower of former U.S. Rep. Gerry Studds, the first openly gay member of the House of Representatives.
“It saddens us because we love our country,” Ritchie told Denise Lavoie in a recent Associated Press article. “We are taxpayers. We live just like anyone else in our community. We do everything just like every other family, like every other married couple, and we are treated like less than that.” The lawsuit was filed in Boston by Gay & Lesbian Advocates & Defenders, the anti-discrimination group that brought a successful legal challenge leading to Massachusetts becoming the first state to legalize gay marriage in 2004.
Singer Melissa Etheridge has gotten pretty fed up with the federal government’s recognition, or lack thereof, of her marriage as well. Etheridge and spouse, Tammy Lynn Michaels, tied the knot back in 2003, after California
initially approved a Domestic Partnership Registry in the state. Following the passage of Proposition 8 in California, Etheridge posted a blog on The Daily Beast (www.thedailybeast.com) in which she declares that she’s “not allowed the same right (to marry) under the state constitution as any other citizen . . . I am taking that to mean I do not have to pay my state taxes because I am not a full citizen.” She goes on to point out that in this economy it’s “too bad California . . . I guess you will have to find some other way to get out of the budget trouble you are in.” Etheridge also seems to encourage others in California to follow her lead in boycotting paying taxes. “Come to think of it, there are quite a few of us fortunate gay folks that will be having some extra cash this year. What recession? We’re gay!” says Etheridge. It’s unclear whether Etheridge will follow through with her threats and hold on to her “half a million dollars” that she otherwise would hand over to the state of California, but she makes a great point. Taxation without representation is one of the battles that gave birth to the United States.
Either way, before you venture into the land of W2s this year, it may be a good idea to seek tax help from a gay-savvy Certified Public Accountant (CPA) who understands your situation. Steve Gamble and Terry Livingston are a gay couple and own Gamble & Livingston, CPAs, LLC in Myrtle Beach. Gamble says “by doing this (finding a gay-savvy CPA) they can be honest and explain their desire to reap the most benefit from their joint tax situation while staying in compliance with the federal and state tax laws.” The couple offers accounting, tax and financial planning services. In addition, they are a member of SIPC (Securities Investor Protection Corporation) and offer management advisory services, employee benefits and pension planning and more. “When we work with couples, we seek ways to reduce their tax bill by structuring their finances in ways that get the couple as a whole the most benefit.”
Sites like TurboTax.com also provide you the ability to test different filing scenarios without spending a great deal of time on it. Also, don’t be afraid to ask your personal accountant the difficult questions. This is your money we’re talking about.
For more information about tax time issues for same-sex couples check out Lambda Legal’s guide to “Tax Considerations for Same-Sex Couples”(http://data.lambdalegal.org/pdf/tax_bulletin_2006.pdf). Although the organization, which is the nation’s oldest and largest legal outfit working for the civil rights of LGBT people, states that you should seek professional advice regarding your specific tax obligations, the guide does provide information on how to deal with federal income tax filings under DOMA, child tax and adoption credit information, health insurance, property and retirement assets.
ready to dine?
It’s almost time for the 14th annual Dining With Friends event to be held on Saturday, April 25. Designed to bring a diverse group of local people together, the event consists of multiple simultaneous dinner parties, held mostly on the evening of April 25, around town. Funds are raised as guests attending the dinner parties present tax-deductible contributions to their hosts. These funds benefit Careteam, a non-profit organization that works to empower our community with the means to stop the spread of HIV through prevention, education, treatment and support in Horry, Georgetown and Williamsburg Counties. Following the dinners, guests from various parties converge for the Dining With Friends After Party Celebration, held at the Myrtle Beach Train Depot for dancing and desserts while the contributions from each party are tallied.
This year, in addition to the festivities, Careteam will host the Guess Who’s Coming to Dinner Art Auction. More than 20 local artists have come together to create original pieces of art on dinner plates to be auctioned off at the after party. In addition, a plate was designed by the cast and crew of the upcoming “Sherlock Holmes” film featuring signatures by Guy Ritchie, Robert Downey, Jr. and Jude Law. The plates are on display at Palmetto Studios, located at 807 Main Street in downtown Myrtle Beach, through April 24.
It’s not too late to be a part of this fun-filled evening. For more information or to host a party, call 236-9000 or send e-mail to: CareteamFriends@aol.com.
out & about
Thursday, March 26 – In case you missed it, The Center Project will be showing “For the Bible Tells Me So” again at 7 tonight. The Daniel Karslake film openly looks at the intersection between religion and homosexuality in America. TCP is located at 736 Eighth Avenue North in downtown Myrtle Beach. For more information, call 626-4953.
Sundays – The Center Project has announced the dates for Myrtle Beach Pride Weekend 2009 for July 3-5 and is seeking volunteers for this year’s celebration. TCP will hold organizational meetings starting at 4 p.m. Sunday. For more information, visit www.thecenterproject.com or call 626-4953.
Friday, April 3 – The Gay Professionals Happy Hour will meet from 5:30 - 7:30 p.m. Friday at California Dreaming located 2657 Beaver Run Blvd., just south of the intersection of S.C. 544 and U.S. 17 Bypass near Surfside Beach. GPHH meets the first Friday of every month at different locations along the Strand and is open to everyone. For more information email FirstFriday@GambleLivingston.com.
Till next week, have fun and be safe.
Click here for more A GAY in the Life