The Supreme Court Brings Tax Equality to Same Sex Families

Author: Keith Huggett 

With a vote of of 5-4 the Supreme Court leveled the tax field for same sex couples. No longer are same sex married couples forced to file separate tax returns. They now have the option to file jointly as a married couple just as heterosexual married couples do. They can file taxes, claim inheritances, and handle other tax and benefit issues in the same way as other married couples. Insurance benefits will no longer be considered taxable income.

Due to being unable to file jointly as a married couple there are a couple of tax issues that same sex couples will have to deal with.  Filing separately will have caused an overpayment in taxes, for which, they will now be able to file an amended joint return in an attempt to get a refund for the last three years. For years beyond that, legal aid will be necessary.

In order to file any tax return at all as a "legally married couple" will depend on where a couple lives. The Internal Revenue Service and the Social Security Administration  both define a marriage as "legal" depending on where you live. If the state you live in does not recognize your marriage as being legal, you cannot benefit from federal spousal benefits. In order for a same sex couple to benefit from the federal spousal benefits they must live in 1 of the 13 states that recognize same sex marriage.  These states are:

• California
• Connecticut
• Delaware
• District of Columbia
• Iowa
• Massachusetts
• Maine
• Maryland
• New Hampshire
• New York
• Rhode Island
• Vermont
• Washington

Because of the changes to DOMA, it's effects are going to ripple through the tax code and cause many changes to the lives and family members of same sex couples.  People have been working hard to effect this change for so long, now that it is here, there are still many difficult challenges and complications to work out.

With California coming on board as the 13th state to legalize same sex marriage, couples living here are going to be facing many tax ramifications.  At the Tax Office, Inc. Our tax specializations suggest that speaking with a tax professional might be in your best insterest before making any changes to your tax plan.  If you have any questions regarding how the defeat of DOMA and the legalization of same sex marriage may or may not affect your tax situation, please feel free to contact us for no cost, no obligation conversation. Our tax professionals are here to answer any questions you may have.