Saturday, April 11, 2009
RDP (Registered Domestic Partnership) Tax Tip
If you've used TurboTax and are in a Registered Domestic Partnership (RDP) in a state like California, here are some tips on how to import tax data from the previous year. Last tax year in 2007, we each filed with the federal government as "single" but the state requires us to file as RDPs. As a result, there are two tax files, one for federal and one for state. Now for tax year 2008, TurboTax asks which file to import, choose the state RDP one! This might seem counter-intuitive but I learned the hard way not to choose the federal one first. Here's why, in order to calculate one's federal taxes there is a dependency on the amount of state taxes one paid the previous year and that information is in the state RDP file.
Once you import the state RDP file from the previous year, TurboTax will go through a few screens of questions. Eventually, you get to the "Personal Info" tab, edit your info and select continue to move to a screen that will allow you to select "RDP". You can then choose to start your federal single return. You may also have to select "Single" on your federal return. After finishing, TurboTax will tell you to go back and redo the federal return as "married" and then continue onto your state tax return. You will end up with at least two files: one for federal and another for state. Plus, your RDP will too depending if you file with the state as married filing separately or jointly.
I found the user interface confusing and had to redo my return a few times. However, on the positive side, the software does at least support RDPs and same-sex marriages. Also, I wasn't able to find much info on this topic on the web. Hope this helps.