As a part of Project OUTReach, the QLaw Foundation joined forces with the ACLU of Washington, Legal Voice, Pride Foundation, Lambda Legal, the GSBA, and the UW Federal Tax Clinic to provide a presentation with experts in the field of tax planning  and solutions for same-sex couples.  The audio of the event is available here. 

The panelists, Wendy Goffe, Estate Planning attorney at Stoel Rives and Marci Flanery, of Flanery CPA along with moderator  by James McGuire, QLaw Foundation founding member and ACLU cooperating attorney at Hillis Clark Martin & Peterson P.S., provided a thoughtful discussion about the pending marriage equality cases in the U.S. Supreme Court,  possible outcomes for the cases, and what  the cases will mean for same-sex couples, particularly in the area of taxes. 

The panelists also provided an explanation and history of “income-splitting,” the tax methodology that same-sex couples in a legally recognized relationship in Washington should be using to file their federal taxes. They also explained that if the so-called “Defense of Marriage Act” is held unconstitutional, same-sex couples will be able to file married filing jointly (and noted that in some situations this may actually result in greater taxes). 

The panelists also discussed methods of estate planning that couples can utilize to determine how they want their property to be taxed, and whether it will have a separate or community property designation through prenuptial agreements and post-nuptial agreements. But they also cautioned there may be tax consequences if you are converting community property into separate property because it could be determined to be a gift.