A disadvantage for high-earning couples on the income-tax side is the marriage penalty. Currently, two partners each earning $400,000 a year in taxable income don’t pay the top rate of 39.6 percent, which starts at income above that amount for singles and at $450,000 for married couples.
If the federal law is overturned and the same-sex spouses file jointly, their combined income is $800,000, of which $350,000 would be subject to the highest federal rate. “That’s kind of brutal,” Olivieri said.
Tuesday, March 5, 2013
If DOMA overruled, some gay couples will face 'brutal' income tax increases
Although advantages in estate-planning and settlement would be of almost universal benefit to gay couples, the income tax ramifications of DOMA are not so clear cut. Says Bloomberg: