Federal and State Taxation of Domestic Partner Benefits

James Angelini & Jason Peterson (both of Suffolk University, Sawyer Business School), The Federal and State Taxation of Domestic Partner Benefits, 62 State Tax Notes 377 (Nov. 7, 2011):

This article examines the federal and state taxation of employee benefits extended to same- or opposite-sex spouses, dependents, and same- or opposite-sex domestic partners. Although there are many other tax issues regarding same-sex marriage, such as federal compared with state filing rules, community property issues, and estate tax differences, this article focuses on employee benefits.

In Part II we discuss the history of domestic partnerships and their varying state and employer definitions, as well as summarize the laws in each state while considering the impact of same-sex marriage. In Part III we discuss and illustrate the federal and state tax treatment of benefits provided to spouses and domestic partners, either same- or opposite-sex. In Part IV we offer a summary and several predictions.

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