- Days left

Suze Orman: U.S. Tax Code a 'Travesty' for Gay Couples

×
Suze Orman
John Amis, AP
By Mandi Woodruff

Personal finance expert Suze Orman took a break from her soap box at CNBC on Monday to speak candidly about her experience as a gay taxpayer in America. "There is such discrimination [in our tax code], from insurance benefits to Social Security benefits ... anything you can possibly think of," Orman said during a conference call coordinated by the Respect for Marriage Coalition.

"It's a travesty to say the least," she said.

The crux of the gay marriage tax debate is this: So long as states continue to legally recognize same-sex marriage while the federal government does not, couples essentially have double the amount of work on their plate when filing their tax returns each year.

For instance, a same-sex married couple living in New York state would need three tax returns -- one joint state return and two separate federal tax forms for each of them.

"We can't just go down to H&R Block and have them plug in our numbers," family law attorney David Pisarra, who is also in a same-sex relationship, told Business Insider. "You're probably going to at least double, if not triple, the accountant's time, because you're adding one state return and two federal."

Further complicating matters, same-sex couples aren't able to access some tax breaks that traditional married couples can. A gay stay-at-home parent, for example, can't currently enroll in a Roth IRA or traditional IRA because they can't claim their spouse's source of income.

And if that spouse chooses to enroll in his or her partner's health insurance plan, they would have to pay taxes on those benefits. Similarly, if one spouse dies, the other would have to pay federal estate taxes on assets left in their name.

Orman herself has been married to her long-time partner, Kathy Travis (KT), for three years. They wed, not in the U.S., but in South Africa, which recognizes same-sex marriage at the national level.

"Overturning [the Defense of Marriage Act] is essential for us to have true equality," she said. "Financial discrimination just really adds insult to injury."

As for the fate of DOMA, the Supreme Court is expected to issue an opinion this summer.

For same-sex couples looking for resources on filing their taxes, Gay & Lesbian Advocates & Defenders has a host of great resources. You can access their guide on Navigating Income Taxes for Married Same-Sex Couples publication here.

More From Business Insider:
How to Screw Up Your Tax Refund in Seven Steps
Gay Couples Could Spend Twice as Much on Preparing Their Taxes
9 Ways to Spot a Tax Scam

Increase your money and finance knowledge from home

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

TurboTax Articles

Are You Exempt From Health Care Coverage?

The Affordable Care Act, or Obamacare, is an individual mandate that requires all eligible Americans to have some form of basic health coverage by 2014. Those without insurance will receive a penalty when they file their tax returns ? that is, unless they have an exemption. TurboTax's Exemption Check can help you find out whether or not you qualify for an exemption.

Essential Tax Forms for the Affordable Care Act

The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.

Mortgage Refinance Tax Deductions

When refinancing a mortgage to get a lower interest rate or obtain more favorable loan terms, you're really just taking out a new loan and using the money to pay off your existing home loan. In general, the same tax deductions are available when you're refinancing a mortgage as when you're taking out a mortgage to buy a home.

How to Determine if You Have Minimum Essential Coverage (MEC)

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.

Rental Property Deductions You Can Take at Tax Time

Rental property often offers larger deductions and tax benefits than most investments. Many of these are overlooked by landlords at tax time. This can make a difference in making a profit or losing money on your real estate venture. If you own a rental property, the IRS allows you to deduct expenses you pay for the upkeep and maintenance of the property, conserving and managing the property, and other expenses deemed necessary and associated with property rental.

Add a Comment

*0 / 3000 Character Maximum

33 Comments

Filter by:
Lisa

Before my husband retired from the military, we always had to file three forms when he was stationed in the States - one Fed, our home State for his income and the State he was stationed in for mine.

April 18 2013 at 10:29 PM Report abuse rate up rate down Reply
mjliles

The GAYS are screaming about the taxes? They need to go back to being straight then. Because it does not matter what is what on sexual orientation when it comes to taxes, girlie. We are all getting taxed to death. Quit crying and pay, pay, pay. You voted for Obama so enjoy it.

April 18 2013 at 7:13 PM Report abuse rate up rate down Reply
maggiemoe1950

Don't worry my friends. The Lord himself shall descend
from heaven, with a shout, and the voice of an arch angel, and with the trump of God;
and the dead in Christ shall be raised first; then we which are alive and remain shall be
caught up together with them to meet the Lord in the air."
Are you ready for THE RAPTURE. I hope so, Don't Be LEFT BEHIND

April 18 2013 at 6:16 PM Report abuse rate up rate down Reply
gngbjg

One more thing, right now, for every dollar the U.S. and Federal Reserve prints, they have to borrow 46 cents and they have been printing like crazy since 2009 without any consideration for what's going to happen because of it. That's why the dollar is going down the tube.

April 18 2013 at 6:03 PM Report abuse rate up rate down Reply
gngbjg

Why don't you just say that the tax code is a travesty for everyone, which it is? You don't need to bring gender or anything else into the problem right now, the way the country is headed. We're all in real trouble right now and all need to work together now. Don't start the we verses they situation because we need to all stick together to get out of this mess. We all need to wake Washington up to make them to see the real big problem and get them to quite. They need to stop listening to the White house and all their crony's with we're right your not and make America right again. Right now if we don't start seeing what's happening to the American dollar and what other countries are doing to get away from using our money, this country will be truly lost along with every man, women and child no matter who or what they believe in. So stop pointing fingers and start working together to solve the problem together. We truly have a very, very big problem. Get over yourselves and let's get this figured out, NOW.

April 18 2013 at 5:55 PM Report abuse -1 rate up rate down Reply
pearc2

lets change the world to suit the gays,they cant be expected to bend a little to go with the laws that are already there

April 18 2013 at 5:53 PM Report abuse rate up rate down Reply
1 reply to pearc2's comment
exlondoner

If YOU were forced to subsidize families for your entire life would you complain? YOU BETCHA.

April 18 2013 at 5:57 PM Report abuse rate up rate down Reply
1 reply to exlondoner's comment
woodwiz2

families are our future,,,,kids grow up and get jobs and pay taxes!...It costs a lot of money to raise children the right way, and families need a tax break thru claiming kids as dependents.

April 18 2013 at 6:09 PM Report abuse rate up rate down
Steve Semonious

Unemployment is not a hand out, If you go to the bank and withdraw money, Is that a hand out? The governments job is to create more taxes and more tax payers. If you think about it, Thats what the church does also. We based our whole government on freedom. But somewhere down the line rich people figured out that they could afford to buy elections. Now we have a government based on raising income for upper 1%. It really is brilliant. But my question is"What are we as citizens going to do about it?"

April 18 2013 at 5:42 PM Report abuse -2 rate up rate down Reply
teddrio

Well maybe at her income level, it's hard to feel sympathy, but she isn't just being self-important, as one commentator noted. She makes some very valid points, and they apply to gays at all income levels. Believe me, she knows what she is talking about, and I appreciate her speaking up. We need to get rid of DOMA and have the same rights as everyone else.

April 18 2013 at 5:38 PM Report abuse rate up rate down Reply
1 reply to teddrio's comment
tdhammond1

I really have no opinion on gays, I say live and let live. And yes I am Christian, but I believe the Bible, I have no right to judge. My problem is with the American Government and Individual rights, if we could just get back to what this country was "founded" on.

April 18 2013 at 5:55 PM Report abuse -1 rate up rate down Reply
BeagleDawg

the tax code is a night mare for all tax payers not only gays. Obama wants to add additional codes, the man is an idiot of the first degree.

April 18 2013 at 5:30 PM Report abuse +3 rate up rate down Reply
debnaert

NO ONE is taxed more UNFAIRLY than the single person! If we own a home we HAVE to pay property taxes of which more than half goes to PUBLIC SCHOOLS to educate a kid that's NOT MINE! I went to a private school.... there fore my parents had to pay for that and some public school kid also. It's so UNFAIR! And while we are at it.... cut the time table for unemployment to 6 MONTHS! These lazy good for nothings are ******* this country dry!~ OBAMA!

April 18 2013 at 5:26 PM Report abuse +2 rate up rate down Reply