Tax Impact of the New Domestic Partner Law
Excerpted from the Sunday, October 8, 2006 issue if the San Francisco Chronicle
Tax Impact of the New Domestic Partner Law
by Kathleen Pender
The new California law that requires registered domestic partners to file their state taxes like married people is a symbolic victory for gay couples. But the financial impact won’t always be positive, and most will face new tax-filing and planning headaches when the law takes effect next year.
Under SB1827, signed by Gov. Schwarzenegger last weekend, registered domestic partners can no longer file their state tax returns as single or head of household. For tax year 2007 and beyond, they can choose married filing jointly or married filing separately, the same options married couples generally have.
However, domestic partners must continue filing their federal taxes as single or head of household. This is where the headaches come in.
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