Is a civil union recognized for state income tax purposes?

Yes, a civil union is recognized for state income tax purposes in Delaware. According to the Delaware Division of Revenue, civil unions in Delaware are considered the same as marriages for tax purposes. That means any income, deductions, credits, and other items applicable to married couples are also applicable to couples in a civil union. For example, civil union couples in Delaware can file a joint state income tax return, meaning that they can combine their income, deductions, and credits on the same tax form. This can help couples to minimize their overall tax bill, as they can benefit from the credits, deductions, and other tax breaks that they would not be able to get if they filed separately. In addition, civil union couples can take advantage of the same tax breaks as married couples when they sell their homes. If they have lived in the same home for consecutive periods of time that add up to two out of the past five years, they can exclude up to $500,000 of capital gains from their taxes. This is the same as married couples can do. Finally, survivors of civil union partners can qualify for the same estate tax benefits that married couples are eligible for. This means that a surviving partner in a civil union can receive the proceeds from their partner’s estate without having to pay any estate tax. This is a crucial benefit for the surviving partner.

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