The 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 same sex marriage and then you move to a state that does not allow it, that will still result in a tax mess.  It’s going to be a sticky tax situation if you move from Minnesota to Alabama where the marriage is not allowed, or if you are part-year residents of two states – one that allows the marriage and one that does not.  What about filing amended returns for the prior years when you were forced to file separate returns?  The possibilities for complications are still endless, but this is going to help a lot of same sex couples have a much simpler time filing and paying their taxes.