Are there any tax implications to a civil union?
When people enter into a civil union in the state of Washington, tax considerations must be made. This includes income tax, estate tax, and gift tax implications. Income tax implications may arise from the filing of a joint income tax return. Since a civil union grants the same tax benefits as marriage, couples in a civil union may choose to file their taxes jointly, similar to a married couple. Doing so can potentially reduce the amount of taxes due for the couple. In addition, civil unions are recognized for certain types of estate taxes. This means that when one partner in a civil union passes away, their assets may pass to the surviving partner without being subjected to estate taxes. The surviving partner also may benefit from a tax deduction on the assets inherited. Finally, civil unions are recognized for the purpose of gift tax. This means that gifts made to a partner in a civil union are not subject to gift taxes. Without this provision, both the giver and receiver could be subject to gift taxes, which could reduce the overall value of the gift. In conclusion, understanding the tax implications of entering a civil union is important for couples in Washington. Couples should discuss the implications with a tax professional and consider filing jointly to potentially reduce their overall tax burden.
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