Domestic Partner Planning FAQ
REGISTERED PARTNER
COMMUNITY PROPERTY INCOME TAX REFUND
TAX ALERT
On May 28, 2010, IRS finally issued advice to registered domestic partners from California, about how to handle their federal income tax returns. This advice comes late – but shows that registered partners who have community property income (automatic in California, Washington or Nevada unless the registered partners “opt out” by written agreement) can income split on the two federal tax returns for the partners.
Income splitting means that each partner reports only 50% of the combined income from personal services, properties, and other sources. Lower tax brackets generate lower overall taxes, particularly beneficial if one partner has much higher income than the other. If community property state registered partners split income on their federal returns, the result often is a REFUND for the higher income partner (which usually exceeds the increase in tax on the lower earning partner’s return).
If you, or your friends, were registered partners in California, Washington or Nevada from 2007-2009, you MAY, but are not required to, amend your old federal income tax returns.
If you, or your friends, were registered partners in California, Washington or Nevada from 2007-2009, then
Take this Tax Alert to your income tax advisor to have the numbers run to see whether this income-splitting change generates a tax refund for you.
Your tax advisor should review CCA 201021050, released by the IRS on May 28, 2010, for more details.
Note: Oregon RDP residents DO NOT generate community property income from Oregon earnings, but if they were registered in, and have community property brought from, Washington, California or Nevada, that community-property (i.e. brokerage accounts, savings, real estate sales proceeds) may generate community property income, so their tax advisors also need to have this Tax Alert.
VETERANS ALERT
Veterans qualify for many medical, income supplement, and other benefits offered by both the state and federal government. Military policies against gays, and gender discrimination against transsexuals, have denied LGBTQ Veterans benefits for their partners and spouses. Most recently, the “Don’t Ask, Don’t Tell” [DADT] policy, 10 U.S.C. 654, has resulted in outing of Veterans and unfair discharges. State governments in Washington and California have opened state-funded spousal Veterans benefits to registered domestic partners.
Repealing DADT is before Congress now, and the measure should pass next month. Repeal would await the report of the Working Group established by the Defense Department. The Working Group is studying how to best implement repeal, not whether DADT should be repealed. Repeal will become effective 60 days after the President, Secretary of Defense and Chairman of the Joint Chiefs certify that new regulations have been prepared and that repeal is consistent with the standards of military readiness, military effectiveness, unit cohesion, and recruiting and retention of the Armed Forces.
The following checklist will help you prepare for repeal of DADT, and future military Veterans benefits for LGBTQ partners and spouses.
ACTION CHECKLIST
1. Find your DD 214, and set up a file labelled: VETERANS BENEFITS
2. If your discharge was not honourable, see accredited counsellor or military benefits attorney for help upgrading the discharge
3. Enrol for VA medical benefits, even if you get on a waiting list
4. If you were awarded service connected disability
4.1 Put award documentation in the new Veterans Benefits file
4.2 Review each year whether an increased rating claim should be filed
5. If you develop a new health problem, find out whether the new diagnosis is “presumptively service connected” justifying Veterans benefits
6. If you already receive medical care from the VA, sign a medical release for your partner – VA Form 10 5345 “Request For and Authorization to Release”
7. For all discharged or “separated from service” LGBTQ Veterans – consider MARRYING your partner in one of the five states allowing marriage, REGISTERING as domestic partners
Note: Military retirees, and those persons in the “Individual Ready Reserve,” or those serving (active or inactive) in the National Guard, are not yet DISCHARGED and SEPARATED, so these LGBTQ Veterans are still subject to DADT’s prohibition on marriage & “attempts” to marry, and self-identifying as being in a same-sex couple relationship would be unwise. Get legal advice from an attorney specializing in military law, or from the Service members Legal Defense Network [ www.SLDN.org] before marrying or registering.
LGBTQ Families – Vacation Alert
Medical Emergencies While Traveling
Let me tell you what happened to a Seattle lesbian couple. While on an Olivia family cruise, one partner, Lisa Pond, suddenly collapsed – and was rushed to a Florida hospital. The hospital ignored the partner, Janice Langbehn – and denied her and the three minor children visitation for eight hours, while the partner was dying from an aneurysm. The hospital received the medical directive by fax from Washington, but ignored it – and asked the ill partner’s father to sign treatment consent forms.
To prepare for medical emergencies when traveling, please do the following:
- Send a copy of your registration/marriage certificate to yourself and your partner as an email attachment. That way, you can download it in a hospital medical records office in an emergency.
- Send a copy of your signed medical advance directive to yourself and your partner as an email attachment. That way, you can download it in a hospital medical records office in an emergency.
- Do not take NO for an answer if denied access to your loved one – President Obama
on April 15, 2010, issued a directive that all hospitals receiving Medicaid and Medicare funds must allow gay and lesbian partners who are designated in advance directives to have the same visiting rights as heterosexuals – and that they be allowed to participate in medical decision-making. The President called Janice Langbehn personally, to tell her of this change.
Your Child Goes Missing or Is Hurt While Traveling
Having your child go missing, or need emergency medical care, are among parents’ worst nightmares. But for LGBTQ families, the anxiety is compounded by the need to have the police or medical systems respond to both parents and understand their right to be involved.
- Send a copy of your adoption decree and the new birth certificate to yourself and your partner as an email attachment. That way, you can download it at the police station or in a hospital medical records office.
- If you rely on your step-parent status because of registration to the child’s parent, or have guardianship, send a copy of the registration certificate or guardianship letters of authority to yourself as an email attachment. That way, you can download it at the police station, or in a hospital medical records office in an emergency. However, if the state denies recognition to your relationship, step-parent status may not be recognized by social service agencies, hospitals, or police authorities.
- Carry a hard copy of the adoption decree, birth certificate, domestic partner registration certificate or guardian document with you – but in a travel emergency, the document may not be in your hand when needed (for example, if you are in an auto accident). The emailed version will be available for download.