2011 Blog 3 - A Silver Lining: Good news for Registered Domestic Partners

2010 was a banner year for registered domestic partners who were able to take advantage of the May 2010 change in federal tax rules for Registered Domestic Partners (RDP).

Not only does this ruling reverse inequities in the federal tax law for registered domestic partners, it is also effective retroactively. This means you can amend 2008, 2009 and 2010 tax returns to take advantage of the new ruling, if you have not done so already.

Wondering whether or not you would benefit by amending a prior tax return? Here are some quidelines for who might benefit:

1) Registered domestic partners who have a large disparity between their gross incomes. For example, a couple in which one partner has a full-time professional salary and the other partner is a stay at home parent.
2) Partners who filed separately, however neither parent claimed head of household.
3) One partner filed using Alternative Minimun Tax (ATM) calculation while the other partner did not file ATM.

In these three scenarios, RDPs can usually benefit by adjusting their tax filing status for the upcoming tax deadline, as well as amending their 2008, 2009 and 2010 federal tax returns.

If you have questions regarding your filing status, we would welcome your call. Sometimes we can decrease your tax liability. One client, that we were able to help, told us, "Wow, I feel like I won something."

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