Thursday, September 4, 2008

Domestic Partner Tax Filing in Oregon

The Oregon Dept. of Revenue (ODR) is preparing forms and special instructions to accommodate domestic partners in 2008 due to the new law finally recognizing these relationships.

Two new “statuses” have been added: Registered domestic partner filing jointly and Registered domestic partner filing separately. For ODR tax purposes, if domestic partners register in an Oregon county, they will be able to file as registered domestic partners. If the domestic partners are registered outside of Oregon, they will need to register in an Oregon county.

Because the federal government does not recognize domestic partners, it gets a little convoluted going from federal Form 1040 to the state return.

The partners will need to file their single federal returns and then prepare another federal return “As-if” a combined federal return were allowed for domestic partners. This “As-if” return will drive the amounts on the state return except for one major difference. The federal tax subtraction shown on the Oregon return will be the amount of the actual federal tax liabilities, less any economic stimulus rebates received.

While this solution isn't perfect, it should help many couples save money by filing together.

Wouldn't it be nice if the federal government would move into the 21st century and allow consenting adults to marry and/or partner up in anyway they so choose?

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