Same-sex couples still face tax nightmares

[Crank]

http://money.cnn.com/2014/03/05/pf/taxes/same-sex-taxes/index.html?hpt=hp_t3

I havent run into this, yet. Wow, that's some pricey tax prep.

[Roberts]

My state doesn't recognize same sex marriage but if filing a joint federal return, they'll accept a joint state return.

All the state asks is how the federal return is filed. If you say Joint, it is joint for the state.

Do you imagine any state actually verifies if a couple is married or if they are separate sex?

[joanmcq]

Well, I've been doing SSMCs in the reverse since 2007: proforma federal to do the CA return, and two single federal returns. Just had a client that was very happy with the fee now that it's just MFJ for both.

Also have done a lot of amended federal returns for those couples who benefit from MFJ. I hope as a mulit-state person along with specialist in SSMCs, I might get some more out of state clients.

[HV Ken]

The article says 5 returns. Really? I understand 3, and I find that process pretty easy to do in ATX. Sounds like there are practitioners out there looking to take advantage of people. Does that really happen?

[Lion EA]

(1) Spouse A federal Single pro forma/not filed to create (2) Spouse A state Single. (3) Spouse B federal Single to create (4) Spouse B state Single. (5) Spouse A&B federal MFJ. Five returns.

[HV Ken]

Create 1st return joint. Duplicate twice, one for each person. In 1st duplicate return, remove all data for the other person. Repeat for 2nd duplicate return. 3 returns. Use 1st return to file Federal joint, use other 2 returns to file State separate. What am I missing?

[Lion EA]

3 federal returns and 2 state = 5

[Gail in Virginia]

Create 1st return joint. Duplicate twice, one for each person. In 1st duplicate return, remove all data for the other person. Repeat for 2nd duplicate return. 3 returns. Use 1st return to file Federal joint, use other 2 returns to file State separate. What am I missing?

You might create two of the federal returns by beginning with a duplicated federal return, BUT you still have to create them, separate out the income and deductions and check that they are correct. Then you would need to create the PDF's to file with the state returns showing the Pro Forma federal income after separating. It might not be as bad as creating those two returns from scratch, but it is still 5 returns the way I count them.

[joanmcq]

But it's not as complicated as the article made it out to be. Usually. Especially since state returns generally flow pretty much from federal input, there's not much tweaking involved. It was a lot more complicated to do two federal, especially in community property states.