Married Same-Sex Couples Can Amend Past Federal Tax Returns to "Married Filing Jointly" -- But That May Not Be a Smart Move for Some
Federal Recognition and New IRS Rules Bring Tax Challenges and Opportunities; Couples Should Review Wills and Insurance, Says New York Accounting Firm Marks Paneth
(firmenpresse) - NEW YORK, NY -- (Marketwired) -- 11/19/13 -- -- either as "married filing jointly" or "married filing separately."
in which they were in a marriage recognized by a state or foreign jurisdiction. The statute of limitations allows them to amend federal returns for 2010, 2011 and 2012 (providing that the 2012 return was filed before September 16, 2013).
But there's a catch: "Being able to file a joint return will benefit many same-sex married couples -- but not all of them," says . He and his colleagues at Marks Paneth offer these tips:
"If spouses have roughly equal income, it may not help to amend past returns, since the tax benefit, if any, will not be significant," Mr. Morris says. "In fact, those couples might fall prey to the so-called 'marriage penalty,' where married couples pay a higher marginal tax rate than would two single people who had the same income."
"Also, in the case of a couple with children, where in the past one spouse adopted the other's children, the law allows for generous adoption credits. But those aren't available in a joint return," Mr. Morris says.
"If income is unequal -- say, for example, that one spouse earned the majority of the income, or one spouse had high income and the other had setbacks or business losses -- then it could be advantageous to amend the past returns and file jointly," Mr. Morris explains. "In that situation, the tax bill on the combined income will probably be lower.
"Also, married couples that amend their returns can recapture the tax they paid on health benefits if a spouse was covered on an employer plan. Those spousal benefits may have been taxable when the couple filed as single individuals, but won't be taxable when they change to 'married filing jointly.' So by amending their returns, they can get those taxes paid back to them."
"Marriage opens up a whole new world for same-sex couples," says . "But like any married couple, they'll have new tax and financial planning issues to manage.
"Too often, people who get married forget to review and update critical information -- in particular withholding, beneficiary selection and insurance coverage -- which can lead to serious problems down the road," Ms. LaForgia says.
She says newly married same-sex couples -- and all newly married couples -- should:
to determine if withholding, dependents or other deductions need to be adjusted for the upcoming year. "Make sure your withholding level is correct for your combined income and you're not being under- or over-withheld," Ms. LaForgia says.
This is particularly important if you have married or divorced during the year. "People go through major life changes and forget to update their beneficiaries. Having the wrong beneficiary on a will, retirement account or insurance policy can make it much harder (and in some cases impossible) for your preferred beneficiary -- for example, your spouse -- to collect benefits. In addition, it could result in adverse tax consequences and lengthy litigation."
"A big lifestyle change like marriage might require you to carry more or different insurance. Couples who have children or who adopt children will probably want to increase their coverage."
"It's important for retired couples to make sure they are both collecting the maximum possible amount. A spouse can collect Social Security based on his or her work record, or a percentage of the spouse's work record, whichever is higher. So if the spouse's benefit is higher, you want to make sure that you're receiving it. If you think you might be eligible for benefits but are not sure, you are encouraged to apply to preserve your filing date."
"Any big change in life status -- such as getting married -- is an opportunity to do a tax and financial check-up and make sure everything is up to date," Ms. LaForgia says.
Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.
The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth, whose origins date back to 1907, is the 34th largest accounting firm in the nation and the 16th largest in the New York area. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.
Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit .
Contact:
Katarina Wenk-Bodenmiller
Sommerfield Communications, Inc.
(212) 255-8386
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 19.11.2013 - 15:05 Uhr
Sprache: Deutsch
News-ID 318238
Anzahl Zeichen: 0
contact information:
Town:
NEW YORK, NY
Kategorie:
Personal Finance
Diese Pressemitteilung wurde bisher 258 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Married Same-Sex Couples Can Amend Past Federal Tax Returns to "Married Filing Jointly" -- But That May Not Be a Smart Move for Some"
steht unter der journalistisch-redaktionellen Verantwortung von
Marks Paneth LLP (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
