What is a "Homo Promo" and what does it have to do with tax season?
On that, It's Only Money will set you straight.
Registered Domestic Partners must file not one but three separate federal tax returns. Because of that, Rainbow recommends RDPs file their state tax returns rather than filing them electronically.
Why? The IRS does not consider gay & lesbian partners to be married.
As the folks at Rainbow explain, RDPs file as singles on their federal return.
Oregon does consider them married, for tax purposes. As such, they must file a federal return with the state as if they are married. They don't send this joint return to the feds, though. They only send it to the Oregon Department of Revenue.
Unfortunately, most e-file programs can't be told to send a federal return to Oregon but not the IRS. Sending a third,
joint return
to the feds, Rainbow believes, would hopelessly mix things up at the IRS.
For this reason, Rainbow Tax Service of Portland is
" for a second year. Rainbow will prepare RDPs' joint federal return for free.
"The client shouldn't have to pay for the fact that U.S. laws regarding marriage are antiquated," said Dan Fellin, who works under founder, CPA and mom Jacolyn Wheatley.
Rainbow launched the promo in 2010 and saw business jump 36 percent. This year, Fellin estimates, business is up 50 percent because of it.
St. John's Tax Service in North Portland also offers a discount on RDP returns. "Our clients tell us our prices are typically very reasonable before any discount," said owner and
Jim Schaller.
The state has
. It says some software supports RDP filings. But the site provides special instructions to ensure your return gets filed correctly with the state. The state also recommends you make sure your tax professional uses software that supports RDP filings.
Do you have any other issues filing as Registered Domestic Partners?