Wierd EIC situation

[joanmcq]

Many of my clients would get more or less than they do if I made the laws but that isn't even on my mind when I try to get inside their lives and also inside the tax laws to puzzle out how things fit.

I don't really understand these comments. I did get a bit ticked because a lot of comments were made, I think, in that I was trying to get the low-wage earner EIC for the child and work the system that way. Wasn't the intent at all, and the question was could I get the low wage earner the 90 bucks for her without a qualifying child that she got before they had the kid. Trust me, it would be much better for most of my same-sex couples if they could file joint (I'm still trying to figure out why people still talk about the 'marriage penalty). But since they can't for federal, I try to get every advantage possible that I can work from the system because they are not married for federal.

[gkaiseril]

U.S. Federal Law and Domestic Partner Headed to Court

Because its same sex.

This situation is working its way to the U.S. Supreme Court.

All these rules and laws cut the taxpayers both ways. Wait unitl they find there is still a marriage penalty for some couples depending upon the income. As one partner can cause the loss of EITC a partner can also cause the AMT to come into action.

[Koss]

Joan--

Is the breadwinner the biological parent?

If not, how can she get HoH and CTC?

Did she adopt the child?

Or is the partnership recognized by state law as a marriage, thereby establishing the relationship as a stepchild?

This is really interesting...

It is undisputed that federal tax law currently does not recognize same-sex marriages. But if the state law does recognize the marriage, will the IRS recognize the stepchild relationship?

BMK

[Davc]

It is undisputed that federal tax law currently does not recognize same-sex marriages. But if the state law does recognize the marriage, will the IRS recognize the stepchild relationship?

BMK

I doubt it, since the definition of stepchild references a marriage that they don't recognize in this situation.

[Davc]

Because its same sex.

Regardless of your feelings regarding SS marraige your original post should not have used the word "parents" while leaving out that pertinent fact. You had people attempting to answer your question with a complete misunderstanding of the actual situation. Thus wasting their time and yours.

[joanmcq]

We are in CA, which has registered domestic partners and had marriage litigated, legislated, and is being relitigated. They are Registered Domestic Partners, they also married during the open window (june - november 5), the student is the biological parent, the breadwinner adopted. All bases are covered. And I used the term 'parents' because they are both the parents of their son. One 'loophole' in their favor is that the breadwinner could take the adoption credit because of the nonrecognition of the marriage, except that they didn't really have much.

Very few of my clients so far have had any kind of a marriage penalty; usually its the other way around. Since I need to do a proforma federal MFJ return to prepare the joint state return, the comparison is really easy. And I have a lot of couples where one partner is the 'housewife'.