Federal marriage benefits? They’re not for everyone

Associated Press

WASHINGTON

Like other married couples, same-sex couples are about to learn that federal benefits for being married might not be all they’re cracked up to be.

Social Security benefits for spouses can be generous, but only for couples with big disparities in their incomes. Taxes are a mixed bag.

Many middle-income couples should get welcome tax breaks now that they can change their filing status from “single” to “married filing jointly.”

The biggest benefits will go to couples in which one spouse makes more money than the other.

Those at the top and bottom of the income scale could face significant increases. High-income taxpayers could feel the pinch because the tax code contains substantial marriage penalties for couples with higher incomes.

Low-income taxpayers could lose benefits that target the working poor if they get married and their spouse’s income disqualifies them.

Low-income parents could lose other government benefits such as Medicaid if they get married and their spouse’s income pushes them above certain limits.

“The poor gay couples, particularly if they’re raising children, are going to face the same huge penalty structure that’s faced by low-income households in general,” said Eugene Steuerle, a former Treasury official.

The Supreme Court on Wednesday struck down parts of a federal law that denied government benefits to same-sex couples.