Could Gay Marriages Raise Tax Rates?

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

5 Surprising Benefits of Exercising Outdoors in WinterFamily

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

17 Ways to Have More Fun for Less MoneySave

This Free Software Brings Old Laptops Back to LifeMore

30 Household Uses for Baby OilSave

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

Considering a Fixer-Upper? 15 Ways to Avoid a Money PitGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Healthful Treats for Your DogFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

20 Tips for Buying a Home in the Best Location, Location, LocationGrow

30 Awesome Things to Do in RetirementCollege

New Study Ranks the Best States in the U.S.Family

6 Overlooked Ways to Save at Chick-fil-AFamily

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

House Hunters: Beware of These 6 Mortgage MistakesBorrow

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

10 Ways to Save When Your Teen Starts DrivingFamily

The True Cost of Bad CreditCredit & Debt

You’ll Soon Pay More to Shop at CostcoSave

Marijuana Stocks Flaming Out Under TrumpFamily

21 Restaurants Offering Free Food Right NowSaving Money

Here's one kind of equal treatment gay couples may not want – combined income on tax forms.

This past week the Supreme Court began hearing arguments that could reshape the American definition of marriage. Whatever your opinion, Reuters has taken a look at some financial implications for gay couples if the Defense of Marriage Act is struck down – There are both positives and negatives.

On the plus side, surviving gay spouses would be eligible for a federal estate tax break. That’s what one of the two court cases challenging current law is about: Edith Windsor had to pay $363,000 in taxes to inherit her wife’s estate, while a heterosexual spouse would have paid nothing.

They would also get certain tax breaks relating to health insurance and more access to federal family and medical leave benefits. They’ll qualify for Social Security survivor benefits, and enjoy many other rights. Reuters says there are “more than 1,100 federal benefits, rights and burdens linked to marriage status.”

On the other hand, joint filing means Social Security benefits are more likely to be taxed. And gay and lesbian couples may hit higher tax brackets sooner – the so-called marriage penalty. With incomes over $1 million, that could mean $30,000 extra on the tax bill.

We’ve mentioned before that gay people as a demographic tend to make and save more money, and the Congressional Budget Office has estimated gay marriage would bring in an additional $1 billion in tax revenue over a decade.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 8 Great Travel Freebies You Can Get in 2017

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,001 more deals!