Same-Sex Couples Filing Jointly

Same-Sex Couples Filing Jointly
A recent article published in Reuters discussed the topic of same-sex couples filing jointly. Although the IRS now permits all same-sex couples to do so, a joint filing status may not necessarily be advantageous. According to the article, "only about 5 percent of married couples file separately because of significant downsides such as limited itemized deductions and a much higher tax bill." Terry Durkin, director of the National Association of Enrolled Agents said, 
"[Ironically] Many couples see the pain, going from two singles to married." 

In deciding whether or not to file jointly, there a few factors to be taken into consideration first. These considerations apply to couples regardless of gender.

1. Differences in Income
In a situation where one spouse is earning considerably less than another, filing separately is likely the better option. Filing separately would allow both spouses to stay in a lower tax bracket and may also be beneficial in terms of itemized deductions.

2. High Incomes
If both spouses are high earners, filing jointly runs the risk of breaking the $450,000 threshold for paying higher tax rates on things.

3. Liability
Choosing to file jointly means that the IRS will hold both spouses responsible for another's error or previous indiscretions. Filing separately eliminates this risk and the IRS will only hold the individual responsible.

For more information on same-sex joint filing read the full article here.

Source: MaSEA