Resolution Urges Tax Equality for Same-Sex Married Couples

For same-sex married couples, paying federal income taxes is not only taxing, it's yet another reminder that their marriages are not recognized by the federal government. But if the Internal Revenue Service (IRS) acts on a recently adopted resolution from the California State Assembly, they may soon be able to claim their income as community property the same way opposite-sex couples do.

The resolution, written by Assemblyman Mike Feuer (D-Los Angeles), whose district includes West Hollywood, was passed Aug. 9 and is in the process of being sent to officials at the IRS.

"It's not a splashy issue," said Rodney Scott, president of the board of Christopher Street West, an activist organization that puts on the Los Angeles Gay Pride Parade. "But it's the heart and soul of what gay and lesbian couples have to face every day."

The immediate monetary benefit to same-sex couples will vary, depending on whether the couple has two roughly equal incomes. If they do, they may pay more taxes, because their combined income can put them in a higher tax bracket. If one of them makes significantly less than the other, their lower combined income and the extra personal deduction they can claim may enable them to pay less tax. 

But Scott said that the real benefit has little to do with who pays how much.

"What gay and lesbian couples are asking for is all the same rights, obligations and responsibilities as everyone else and that goes with the tax laws," Scott said. "It's really important to change some of the language."

Like most things tax-related, the issue is complex. Thanks to the Defense of Marriage Act, the federal government and its agencies cannot recognize a same-sex marriage. However, the Supreme Court has ruled that states get to define what is, and is not, community property. Where the problem arises is that the IRS still insisted that domestic partners and same-sex couples file their income taxes as individuals, even though California's law regarding domestic partnerships and same-sex couples requires them to claim their income as community property, just like heterosexual married couples.

In May, the IRS issued an advisory allowing domestic partners to be taxed as married couples, but was silent regarding same-sex married couples.

The Assembly's Tax Equity Resolution, AJR 29, strongly urges the IRS to allow same-sex couples to file as couples--rather than individuals. Although it can't force the IRS to change its rules, the resolution is a public document that can put pressure on decision makers.

According to a spokesperson from Feuer's office, the Assemblyman has been working hard to make sure that same-sex couples have all the same rights and the same obligations as opposite-sex couples.

Although technically, IRS rules cannot be used as precedents, Scott hopes the resolution will provide some ammunition in the appeals process over the recently overturned Proposition 8, which banned same-sex marriage in California.

"I don't know how the IRS will impact this," Scott said. "What I do hope is that it shows that there's inequality between people who get married."

If you'd like to contact Feuer, visit his site here.