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* This is an interesting development…
Starting in January, Illinois will allow couples who obtained civil-union licenses this year to file joint state income tax returns, a symbolic change that likely won’t save couples money but that one gay-rights group called an important step.
Monday’s announcement comes after Illinois became the seventh state, along with the District of Columbia, to give same-sex couples significant legal protections. Gov. Pat Quinn signed the state’s civil union law in January.
That bill included the right to decide medical care for an ailing partner and the right to inherit property, but it didn’t include the ability for same-sex couples to file a joint tax return.
While federal law does not allow same-sex couples to submit taxes together, Quinn pushed for the state to make the change after signing the civil union bill, Illinois Department of Revenue spokeswoman Susan Hofer said Monday.
* Equality Illinois has been pushing for this ever since the civil unions law took effect. From a press release…
“Since the beginning of June when same-sex couples first started entering into civil unions, no one could speak with certainty about how this new status would affect state tax policy,” Randy Hannig, Director of Public Policy for Equality Illinois, said. “We immediately reached out to the Illinois Department of Revenue and started the process of figuring out a solid solution to this problem. Illinois law specifies that couples in a civil union are afforded the same rights and benefits as married spouses, so why should same-sex couples’ state tax status be any different?”
Under the new guidelines issued by the Department of Revenue, same-sex couples in a civil union may elect to file state taxes as “married, filed jointly” or “married, filed separately” – the same options opposite-sex married couples may choose. If applicable, couples would check a box for “same-sex civil union return.” In order to determine the adjusted gross income to include on state filings, couples will have to complete a pro forma federal IRS return.
* From Illinois Issues’ blog…
Those in civil unions would still have to file separate federal returns as single because the federal government does not recognize their partnerships. Couples who do not wish to file a joint return would still file as married but would be able to file separate state returns.
Hofer said joint filing for state taxes will not result in large tax benefits for couples — the substantial benefit comes at the federal level for couples with disparate incomes. If one person has a much smaller income, it can move the household into a lower tax bracket than the individual was in. “In Illinois because we are a flat tax state, you really aren’t going to see any significant change to your taxes. … With the state, everybody pays a 5 percent flat tax. But there will be some benefits.” She said that exemptions such as for property taxes or education expenses, could be applied a couple’s total income instead of just an individual’s earnings.
Thoughts?
posted by Rich Miller
Tuesday, Nov 29, 11 @ 9:18 am
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Filing joint returns — one of the great joys of wedded bliss.
The honeymoon’s over, I guess, lol.
Seriously, nice job by Quinn to push it through the system. It’s called progress.
Comment by wordslinger Tuesday, Nov 29, 11 @ 9:24 am
Federal action should be taken to give gay couples the same right..Actually, we should just allow gay couples to marry.
Comment by Ahoy Tuesday, Nov 29, 11 @ 9:49 am
The Genie is out of the bottle,letting people with civil unions file tax returns is fair. Now they join the rest of us married folks. Not a bad idea, Quinn finally got it right. It’s time to turn the page and get our States finances in order.
Comment by mokenavince Tuesday, Nov 29, 11 @ 9:50 am
A long overdue but very positive step.
Comment by GoldCoastConservative Tuesday, Nov 29, 11 @ 9:52 am
Good. . .it’s about time. . .now can we get serious about our fiscal calamity?
Comment by Way Way Down Here Tuesday, Nov 29, 11 @ 10:03 am
OMG My marriage is falling apart, and it’s all THEIR fault.
Only kidding. Glad for this improvement.
Comment by walkinfool Tuesday, Nov 29, 11 @ 10:07 am
great move by quinn. equality is equality.
Comment by amalia Tuesday, Nov 29, 11 @ 10:59 am
For once, doing the right thing for the right reason. Wish that kind of thinking could spread to other issues we’re dealing with.
Comment by Aldyth Tuesday, Nov 29, 11 @ 11:22 am
I am half of a couple that has been having the same sex for several years (and it has been wonderful). So now I get to file a joint tax return if she agrees. Cool.
Comment by Anonymous Tuesday, Nov 29, 11 @ 1:33 pm
In the interest of equality, that’s nice. From a State income tax perspective, it won’t make much difference, if any. In terms of dealing with the State’s problems, no effect …
Comment by Retired Non-Union Guy Tuesday, Nov 29, 11 @ 3:48 pm