The Same-­Sex Marriage Decision: What’s at Stake for Couples (@tarasbernard @nytimes)

Tara Siegel Bernard at The New York Times explains what's at stake financially for same-sex couples as we await the decision from the Supreme Court:

Full article at The New York Times

"The highest court’s landmark decision in 2013, United States v. Windsor,
already established that married same­-sex couples were entitled to federal
benefits. But two major federal agencies, Social Security and Veterans Affairs,
must still look to the states to determine marital status, so couples living in
nonrecognition states are generally cut off from receiving those benefits.
Same­-sex couples are not entitled to many state­-conferred benefits either."



If you filed taxes in CA, NV, OR or Washington states and are (or were after 2010) Registered Domestic Partners, try our calculator to see if you may be eligible for an IRS refund http://www.lgbt.tax/Calculator

When Does a Gift Trigger a Tax Bill? (@kerenzulli @MONEY)

If you're giving people in your life money, check and make sure you can legally do it tax free -- if at first it seems you cant, you may not be out of luck -- Kerri Anne Renzulli has some advice for you:

Full article at Money Magazine

"Every year, you’re allowed to give another person up to the annual gift tax exclusion—this year $14,000—without reporting the transfer to the IRS or having to pay taxes on the sum, says CPA Cari Weston, senior technical manager of the American Institute of CPAs taxation division."



To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

Americans Aren't Saving Enough for Retirement, But One Change Could Help (@portereduardo @nytimes)

Are you putting enough away for retirement? According to a study from the Center for Retirement Research at Boston College, over half of American households will not have enough money to maintain their current lifestyle. However, according to Eduardo Porter, there is a way to change this, and America seems to be moving in the right direction to do so.

Full article at The New York Times

"Here is something every non­-rich American family should know: The odds are that you will run out of money in retirement. 
On average, a typical working family in the anteroom of retirement — headed by somebody 55 to 64 years old — has only about $104,000 in retirement savings, according to the Federal Reserve’s Survey of Consumer Finances. 
That’s not nearly enough. And the situation will only grow worse."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

How to give your home to your children tax-free (@MarketWatch)

Bill Bischoff explains various ways you can pass your home down to your children, so you can make an informed decision, and start taking the steps necessary to ensure that all goes as planned.

Full article at MarketWatch

"Before the days of estate taxes, children simply moved into the family home and took over the master bedroom after their parents died. Unfortunately, it’s not that easy anymore.

There are several ways to give a home to your child. And a few are tax-free. But in order for the transaction to work properly, you’ve got to plan ahead."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

10 Money Mistakes That Can Ruin a Marriage (@YahooFinance)

Renee Morad shares 10 mistakes that couples often make regarding how they use and communicate about money in their relationship.


Full article at Yahoo! Finance


"As anyone who’s been there knows, there’s no such thing as a friction-free marriage. But arguing can be ominous when the topic is money.

"Couples who reported disagreeing about finances once a week were 30 percent more likely to get divorced than couples who reported disagreeing about them once a month, according to a Utah State University study."

Check out our website for more information about us http://www.lgbt.tax/

Debt vs. Retirement: How Much To Put Toward Each (@laurashin @forbes)

Another great article by Laura Shin, which this time focuses on what and how people should save based on their level of debt, and the financial goals they have.

Full article on Forbes

"The right balance between debt payments and savings contributions isn’t simply a matter of making a mathematical calculation. “It comes down to the different financial goals you have and what you have going on in your current situation,” says Bera.

Most importantly, don’t become paralyzed by the amount you owe or the complexity of the question. Instead, formulate as good a plan as you can, and automate it."

Check out our website for more information about us http://www.lgbt.tax/

Here's the surprisingly conservative budget of a 26-year-old who earns over $200,000 a year (@libbykane @businessinsider)

Libby Kane spotlights how a young man in the consulting business is managing to save roughly two-thirds of his income so that he can retire with $5 million in the bank at the age of 45.

Full article at Business Insider

"He says he and his wife closely monitor their costs, with the aim of saving half their income. In fact, when taking into account their company stock, retirement accounts, and other investments, they manage to save about 67% of their income."

'"The budget matches the lifestyle, which ultimately matches what my wife and I dream of: to retire early and travel," Jacobs says. "If you understand the full picture, the budget makes a lot of sense. It's not just what's your end-of-year goal, but what about five, 10, or 15 years?"'

Check out our website for more information about us http://www.lgbt.tax/

Love Is An Expensive Business - Valentine's Day By The Numbers [Infographic] (@StatistaCharts @forbes)

Niall McCarthy shows just how much we Americans spend on Valentine's Day. Who would have thought that $703 million is spent on gifts just for pets!

Read full article with infographic on Forbes

"Love is an expensive business and nothing proves it better than Valentine’s Day. Few countries take February 14th as seriously as the United States and this year the average American will spend $142.31 on gifts. Men are going to spend nearly twice as much as women with overall sales amounting to a whopping $19 billion, an increase on 2014."

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6 Financial Issues All Same-Sex Couples Should Discuss (@emstarbuck @nerdwallet)

This article highlights important financial issues for couples to consider. Talking about money is sometimes difficult, but very important.  Emily did a great job and gets our thanks for including us in her article.


http://ow.ly/IJS8C


"All couples in long-term relationships must learn how to tackle financial decisions together. But gay and lesbian couples face additional challenges thanks to confusing and ever-changing laws."

For more information, contact us at http://www.lgbt.tax/contactus

5 Smart Financial Moves for Umarried Couples Who Live Together (Farnoosh Torabi @FARNOOSH)

Farnoosh helps focus the financial concerns for unmarried couples. 


http://ow.ly/ID5ZW


"If your relationship is serious but you don't have any plans to walk down the aisle, you'll want to take some extra steps to protect yourselves financially."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

Why You Should Tell Your Children How Much You Make (@RonLieber @NYTimes)

Ron Lieber write a great article on how parents should demystify the concept of money to their kids.


http://ow.ly/Ia3BK


"When Scott Parker wanted his six offspring to know more about the value of money, he decided to do something that many parents would consider radical: show them exactly what he earned."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

When a Roth conversion is right for your estate — and when it isn’t [by Brian Vnak of MarketWatch]

Mr. Vnak writes a good article on estate planning and a Roth IRA conversion.  I would add one additional thought.  By converting to a Roth IRA now, an estate over the lifetime exemption amount (currently $5.43MM) will be reduced by the taxes paid.  This immediate reduction in assets may work to the benefit of the estate tax planner.  Just something else to keep in mind.


http://ow.ly/HjrhD


"The decision to execute a Roth conversion and generate taxable income is more complicated than it may seem at first blush — especially when you consider it in the context of your estate plan."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start

Banking as a Couple: One Checking Account or Two?

It is legal for same-sex couples to open and maintain joint checking accounts in every state in the country, even where gay marriages or even civil unions are not recognized. College roommates, a parent and a child or two Army buddies could all open joint checking accounts – without anyone asking if they’re gay or straight.

But is banking as a couple always a good idea? Consider the benefits and drawbacks before you decide.

Pros

• When two people share a bank account, they pool resources, with each then having access to more money than they would have as individuals.
• Simplification: The entire aggregate of the couple’s cumulative expenses is laid out in one single place on one single balance sheet.
• Transparency: Each can clearly see the expenditures of the other. This can be especially beneficial if one person is more financially responsible. The open nature of a joint account can make the more prudent party less likely to play cop, and can subtly goad the spendthrift into fiscal responsibility.
• It can make couples feel more like a couple – especially in states where same-sex marriage is not recognized. Perhaps more importantly, a joint checking account can serve as a “step” on the way to marriage (or basic cohabitation) to test the waters regarding financial competence, trust and compatibility.

Cons

• Loss of privacy: Everything one party spends – and, if you use a shared debit card, everywhere they spend it – is visible to the other.
• Neither party any longer has his/her “own money”, which can be difficult for independent people to accept.
• If one party earns more than the other, resentment can be a factor for both parties.
• Neither partner can be certain of current bank balance as both partners write checks from the same account. 
• The biggest risk by far, however, comes down to trust, financial competence and potential for abuse. If one party sees a text message they don’t like on the other’s cell phone, they can take every dollar out of the joint account on their way out of the relationship, and the other party has essentially no legal recourse. If one allows tax arrears to fester, the government can seize funds in the account, regardless of whether the partner timely paid his or her taxes. A poorly maintained or frequently overdrawn checking account can degrade borrowing power or limit options for people whose credit is in poor shape, whether they were the ones who were irresponsible or not.

Sharing expenses is an intimate and personal choice for all couples – but it doesn’t have to be absolute. Consider maintaining separate checking accounts, but also open a combined checking account exclusively for shared bills (or emergencies) as a way to ease into this important and consequential decision.

For more information, contact us at http://www.lgbt.tax/contactus

Gift Tax -- Things to Keep in Mind

Everyone loves giving gifts, but depending on the value of the gift, you may have to make one to Uncle Sam as well.

Federal law requires every person who makes a gift of cash or property to another person (except their spouse) to file a gift tax return and pay taxes if the value of the gift is more than the gift tax annual exclusion. Gift taxes are paid by the donor of the gift, not the recipient.

In 2015, the annual gift tax exclusion amount is $14,000, although it increases every year. Gift taxes are calculated on the portion of the gift that exceeds the annual exclusion; in 2015, the gift tax rate is 40%. Gifts are also cumulative, meaning it is the total amount of all gifts made to a single person each year, and not the individual value of each gift.

So if in one calendar year you make one gift of $20,000, or four gifts of $5,000 each, to the same person, you must file a gift tax return. The tax will be calculated on $6,000, the difference between the $20,000 gift and the $14,000 annual exclusion.

There are certain exceptions to the gift tax requirement. No gift tax return is required, and no taxes will be incurred, if the gift was made to benefit any of the following:

• Spouse. The marital exclusion only applies to couples who are legally married; couples in domestic partnerships do not benefit from the exclusion.  With the Repeal of DOMA, this is one more reason to consider marriage.
• Education or medical institutions. Payment for someone’s education or medical expenses are not subject to gift tax, provided the payments are made directly to the educational institution or medical provider. So if you are paying for your son’s or granddaughter’s college education, make sure the payments are made directly to the college, not to your son.
• Charitable donations. The recipient must be a recognized by the IRS as a qualified charitable organization.
• Political contributions. The recipient must be a recognized political candidate or organization (keeping in mind state and federal election finance rules).

If you make a gift that triggers the gift tax, you have two options. The first is to file a gift tax return in the year the gift is made and pay taxes.

The more popular option is to apply the gift toward your lifetime estate tax exemption, which is currently $5.43 million (remember, the amount applied toward the exemption is the amount that exceeds the $14,000, or the then applicable, annual exclusion). This then reduces your available estate tax exemption, which is the amount of money each person can pass onto heirs or beneficiaries, tax-free, at his or her death. When you die, if the total value of your estate is less than the estate tax exemption amount, as adjusted, (which it is for the vast majority of people), the end result is a tax-free gift to beneficiaries.

If you filed taxes in CA, NV, OR or Washington states and are (or were after 2010) Registered Domestic Partners, try our calculator to see if you may be eligible for an IRS refund http://www.lgbt.tax/Calculator

The Best Online Tools for Retirement Planning and Living (Anne Tergesen @annetergesen WSJ)

Good article by Anne Tergesen on Apps to help with retirement.  If you are looking for tools to help with the process, this article give a good summary.


http://ow.ly/HDu0b


"A growing array of apps and websites make it easier to complete many of the most basic—and most important—tasks, from saving money and creating legal documents to figuring out a second career and where to live."

To have us call you about finance, estate planning or tax issues, fill out the form at http://www.lgbt.tax/Start