Tax Guidance for Same-Sex Marriages

On June 26, 2013, the Supreme Court overturned Sec. 3 of the Defense of Marriage Act (DOMA) as unconstitutional because it violates the equal protection clause of the Fifth Amendment. In layman’s terms, this means that same-sex couples who are legally married, under the laws of either their state or a foreign country, are afforded many federal tax benefits that were previously only allowed to opposite-sex couples.

In other words, couples can now file joint federal returns!

In fact, same-sex couples will be treated as married for federal, estate and gift tax purposes. Going forward, same-sex couples will be required to file their federal tax return using the married filing jointly or married filing separately status. They also have an option to amend previous year returns. This federal filing status is required regardless of whether or not the couple lives in a state that recognizes same-sex marriage.

However, the ruling does not apply to registered domestic partnerships, civil unions or similar formal relationships recognized under state law.

And nevertheless, in light of the Supreme Court’s decision, states are still allowed to do what they want, and since the laws regarding marriage vary widely from state to state, many unanswered questions remain.†

They don’t make it easy, do they?

Fortunately, we here to help you navigate the bureaucracy! New York, New Jersey and Pennsylvania couples, why not give us a call at (877) 630-4722 if you have a question about this or any other matter. Or contact us via email and learn how we can help you and your loved one protect your collective assets and Grow Your Business!

†Source: NATP