Being able to claim someone as a medical dependent is different from claiming someone as a tax dependent. Important for same-sex married couples.
All of these are actual questions from visitors to this website over the last few weeks: Q: Can a self-employed person deduct health insurance for same-sex spouse? A: Yes, if the spouse is your dependent. Otherwise, the answer is no. That’s on the federal return. But also consider the implications on the state tax return. […]
DISCLAIMER: The answers to questions in this segment are intended to be general in nature and do NOT constitute tax advice. Please contact a tax advisor to discuss your unique situation. Q: I have a business account with an associated merchants card account. In the past I have done business with entities that only […]
According to Forbes.com, the IRS is continuing to search for people who have not filed gift tax returns on property transfers. From the Forbes article: Although gift tax audits are historically rare, the IRS has examined hundreds of taxpayers in the last two years whom the IRS suspects made large gifts, yet failed to file […]
The tax headaches faced by same-sex married couples got some more coverage over the weekend from the Wall Street Journal: http://online.wsj.com/article/SB10001424052702303982504576428341158786506.html
A tax professional in New York is drafting a letter to the IRS an open letter to Congress and the IRS, telling the IRS them to clarify the federal tax treatment of same-sex married couples. You can read more at Forbes.com. As my own commentary: I’m not sure how successful this letter or other efforts to […]
With last week’s vote by the New York legislature to allow same-sex marriages to be conducted in the state, the New York Department of Revenue says it is working on providing updated guidance to same-sex married couples that will allow those couples to file joint New York tax returns. Even though New York has recognized outside […]
Update: The Illinois Department of Revenue has changed its mind. Couples in same-sex civil unions can file joint Illinois tax returns. Click here for more information. Illinois now allows same-sex civil unions and recognizes same-sex marriages conducted outside the state — but it does not recognize those unions for tax purposes. The Illinois Department of Revenue […]