Karen is self employed and her partner is an employee, whose salary exceeds the social security maximum for social security taxes. Karen earns $140,000 from her business. It is all community income. According to IRS Publication 555, Karen will pay income taxes on only $70,000 of her income. Of course she will also pay taxes on half of her partner's W-2 income. The partner will get full credit for social security benefits ($106,800), but, according to Pub 555, Karen will be limited to $70,000 for social security benefits purposes. Can this be right? Read More ...

Remember that this year's tax deadline is April 18 rather than April 15. That is because Emancipation Day, April 16, the day that President Lincoln signed the Compensated Emancipation Act, is a legal holiday in DC. And since it falls on a Saturday this year, it is being officially celebrated on April 15, traditionally known as Tax Return Day. This holiday extends this year’s deadline for filing timely 2010 tax returns (or any other returns that otherwise would have been due on April 15) to April 18. If you are in a same-sex couple that is recognized by your state this April 18 deadline might be important to you regarding your 2007 tax year. Read More ...