Tag Archive for Same Sex Couples

Tax Filings By Same-Sex Couples

After the US Supreme Court’s decision in Windsor in 2013, tax filing for most same-sex married couples got easier because they were then allowed to file as married at the federal level.  However, that might not have been the case at the state level if the state did not recognize same-sex marriage.  But, states are changing and a few states, including Virginia and Wisconsin now require all married couples to file as married filing joint or married filing separately.

So, how you filed your state return for 2013 might not be the same for 2014.  Same-sex couples should check to see if state law has changed to allow for (require) filing as married. Read More

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State Income Tax Filing Post-Windsor

The United States Supreme Court’s June 2013 ruling in Windsor held that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. The Internal Revenue Service soon thereafter, issued Revenue Ruling 2013-17 holding that a couple married in any jurisdiction allowed to confer marriage status would be considered married even if they live in a state that does not view them as married (that is, it would interpret marriage using a state of celebration approach rather than a state of domicile approach). That makes sense in that otherwise, the federal government would continue to treat some marriages as unequal to others.

So, how do same-sex married couples file their state tax return if they live in a state that doesn’t treat them as married? It depends. Read More

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Many Tax Questions On Same-Sex Federal Tax Filings

I think the Internal Revenue Service did a good job getting real guidance issued on the meaning of the United States Supreme Court’s finding that Section 3 of DOMA is unconstitutional. On August 29, 2013, the Internal Revenue Service issued Revenue Ruling 2013-17 (binding guidance) and some new FAQs (not binding, but often just restating the binding guidance).

Key points of the ruling:

The Internal Revenue Code and regulations should be read in a gender neutral manner. This is helpful because there are several references in both to “husband and wife” rather than always “spouse.” Read More

Written by | Posted in Federal • Individual • IRS • North America

Additional Guidance On Federal Tax Laws For Same-Sex Couples

TaxConnections Blog Post - Additional Guidance on Federal Tax Laws for Same-sex couplesIn a previous article (“Tax Implications Resulting from Demise of the Defense of Marriage Act (DOMA)”; August 15, 2013) I explained that the Treasury Department issued a revenue ruling that permits legally married same-sex couples to file a joint federal tax return and utilize the unlimited martial deduction for estate tax purposes and other provisions of the estate and gift tax laws if the state in which they resided sanctioned such unions. If they moved to a state that does not recognize same-sex marriages, they would not be allowed to utilize these provisions.

New Revenue Ruling

On August 29, the Treasury Department issued a new revenue ruling [Rev Rul 2013-17] expanding the previous one. The new ruling will now allow legally same-sex married couples to file a joint return and utilize the unlimited martial deduction for estate tax purposes and other provisions of the estate and gift tax laws even if they move to a state that does not sanction same-sex marriage. In his statement announcing the new ruling, Treasury Secretary, Jacob B. Lew, stated: “today’s ruling provides certainty and clear, coherent tax-filing standards for all same-sex married couples nationwide. This ruling also assures all legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.” Read More

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Tax Implications Of The DOMA Case

Gay GroomsThe Supreme Court just overturned DOMA which allows for same sex couples that are legally married to obtain federal benefits.  How did this come about?  Of course it was the tax case of a same sex couple that was legally married in their state and went to court against the IRS regarding the application of the federal estate tax laws to that couple.  This isn’t the first time that a tax has made major news.  The healthcare bill was ruled constitutional because it was deemed to be a tax.  Al Capone wasn’t convicted of any violent crimes; he was convicted of tax fraud.  Surprisingly often the tax cases can turn into landmark cases that have shaped the path of major legislation in this country.

In Minnesota, same sex couples will be allowed to legally marry starting August 1st after the voters decided not to ban same sex marriage in November and then the legislature legalized it in May.  So what does this Supreme Court ruling mean for a MN couple?  It means people in MN who are legally married can get federal benefits; practically speaking many of these benefits are tied to taxes.  It means they can file a joint tax return on both their federal and Minnesota tax returns.  I think everyone can agree that is a much simpler system than what previously existed where same sex couples would have to file separate federal returns and then could file joint state returns which was just a mess for everyone involved.

There is still going to be some messy tax situations for same sex couples, but this ruling at least allows for simplicity in the 12 states that do recognize same sex marriage.  If you get married in one of the 12 states that allow Read More

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