Same-sex couples and filing taxes
As more and more states are joining the civil union bandwagon, including Delaware and Hawaii, we’re beginning to see some of the perks of the new domestic partnership status here in Illinois.
The Illinois Department of Revenue has recently confirmed that couples in civil unions will be able to jointly file their taxes in 2012. Although the state’s Civil Union bill took effect last June, it has remained unclear whether couples in civil unions would be able to file taxes together. The Department of Revenue’s initial policy was to require couples in civil unions to file separately, because there might be confusion due to the inability to jointly file federal tax returns. Many gay rights advocates have applauded the change.
As I’ve discussed before, the tax implications of a relationship status are among the most important real-world benefits of civil unions. Filing jointly often allows for couples to get more deductions than filing separately, and usually results in paying less tax overall. It’s important to remember, however, that couples in civil unions can only jointly file for their Illinois state tax returns. The Defense of Marriage Act bars couples in civil unions from jointly filing their federal taxes as “spouses.”
This somewhat complicated system is a reminder that it’s always helpful to consult with a tax adviser and/or family lawyer to navigate the nuances of taxes and other legal issues with your civil union.
Updated on 10-23-18 – Civil Unions are still legal in Illinois. However, in 2013 Illinois had a historic update. Same-sex marriage has been legally recognized in Illinois since a law signed by IL Governor Pat Quinn on November 20, 2013. This law took effect on June 1, 2014.
