Here is a link from the Franchise Tax Board on Registered Domestic Partners:
http://www.ftb.ca.gov/forms/RegDomPrtnr/RegDomPrtnr.html
According to the Mercury News, many registered domestic partners will pay less state tax by filing as married couples for the first time under a new law, but some will pay more. Here's how the Franchise Tax Board sized up the potential outcome, with examples by Rich Waterman, a partner with Sparkman and Waterman CPAs.
WINNERS: 59 percent will pay an average of $473 less.
Example: Couples in which one partner has little or no income.
LOSERS: 12 percent will pay an average of $755 more.
Example: Partners who each own homes could see their mortgage-interest
deduction get crimped. Combining incomes could cost lower-paid partners a chance to deduct IRA savings.
NO CHANGE: 29 percent will pay about the same.
Example: Usually when both partners earn more than $80,000.
See http://www.mercurynews.com/markets/ci_7110465?nclick_check=1.
The problem with Registered Domestic Partners tax return filing is that the IRS does not recognize them as "married"; therefore, they must file as two single individuals, filing separate Forms 1040. However, under CA law, they are considered "married" and therefore must either file as married, filing jointly, or married, filing separately. As a result, Registered Domestic Partners must at least file 3 tax returns each year, two Forms 1040 as singles and one Form 540 as married, filing jointly. This makes their income tax filings much more complicated.
To view a copy of the law, click here.
