IRS Now Recognizing Same Sex Marriages

Okay, so yes, a very different blog post than normal but since I work in taxes, this is a pretty big deal for me and I’m sure there are plenty other people who are VERY interested in and excited about this change.  The IRS is now recognizing same sex marriages!  Next year, when Sally and Susan or John and Tim file their tax returns, they can filed as married… assuming they got married in a state recognizing actual marriage, not just a civil union.

“Under this rule, individuals of the same sex will be considered to be lawfully married under the Code as long as they were married in a state whose laws authorize the marriage of two individuals of the same sex, even if they are domiciled in a state that does not recognize the validity of same-sex marriages.”  AKA, if you were married in New York but moved to (or lived in) Texas, you could still file as married.

“For Federal tax purposes, the term “marriage” does not include registered domestic partnerships, civil unions, or other similar formal relationships recognized under state law that are not denominated as a marriage under that state’s law, and the terms “spouse,” “husband and wife,” “husband,” and “wife” do not include individuals who have entered into such a formal relationship.”  AKA, if you live in a state, such as CO, that only recognizes civil unions, you still must file as single.

Want to know where your state sits as far as marriage/civil unions are concerned?  Check out this handy-dandy map here.

If you’d like to read the Revenue Ruling yourself (some pretty exciting reading), you can view it here.

Make sure you check in with your state before filing your state income tax return to see how they handle same-sex marriages.


2012 Earned Income Tax Credit Documentation Requirement

Here’s my PSA for 2013:

As you all may know, I work in tax resolution.  Well, this year, I’m working for Liberty Tax Service preparing returns as well.  I just wanted to get this out there so that anyone who follows this blog (or happens to search and get here), will know.   Continue reading

How Many Initials Do You Have?

Maybe I’ll just be one of those people who has a ridiculous amount of initials after their name.  Even though I can’t quite add “Esq.” yet, I’m still a JD, I’ll always be SAS Jr. to my dad (we have [had before I got married] the same initials so he was Sr. and I was Jr.), I could go back and finish my MBA but for now, I get to add two more pretty soon: EA.  (And hopefully in October, I’ll get to add Esq. as well!)  I finally passed my last exam to become an Enrolled Agent!   Continue reading

Some friendly advice…

Friendly piece of advice #1:

When starting a business, you might want to actually know what the heck you are doing.  

While this may seem like common sense to some, it is not to all.  There is a lot that goes into a business besides “hey, I can make/sell/do this, so I’m going to open up a place so I can make money doing it”.

Doing what I do, I see mainly the tax side of it.  However, when your business isn’t making any money, you may want to rethink keeping the business open.  This is so hard for most people to hear, but if you aren’t making money, or even worse, if you are losing money, it’s really not worth it anymore.

Another friendly piece of advice: Continue reading