The IRS ruled Friday that all legally married same-sex couples will be treated as married for federal tax purposes no in matter which state they reside. The ruling applies to income, estate and gift tax. The ruling also affects the earned income tax credit or child tax credit.
Domestic partnerships from states such as Nevada or Oregon or civil unions from states such as Hawaii, New Jersey or Colorado are not considered marriages for federal purposes.
Marriage from other countries such as Canada are recognized by the federal government.
Couples will be able to file a 1040X to amend previous returns up to three years. Married couples that paid tax on domestic partner benefits are entitled to refunds. Some couples will be eligible for a refund if they refile with one spouse claiming the other as a dependent.
Legally married couples will file as “married filing jointly” or “married filing separately.”
“This announcement makes today a day of celebration and relief for married same-sex couples all over America,” Freedom to Marry founder Evan Wolfson said. “At long last, the IRS will treat them as what they are: married. Freedom to Marry commends the administration’s swift implementation of the Supreme Court’s landmark ruling for federal equality in an area that will have a direct, tangible impact on families’ financial health.”
“With today’s ruling, committed and loving gay and lesbian married couples will now be treated equally under our nation’s federal tax laws, regardless of the state they call home,” said Human Rights Campaign President Chad Griffin. “These families finally have access to crucial tax benefits and protections previously denied to them under the discriminatory Defense of Marriage Act.”
Log Cabin Republicans Executive Director Gregory T. Angelo issued the following statement:
“Making the tax code simpler, fairer, and flatter is something Log Cabin Republicans has long advocated,” Log Cabin Republicans Executive Director Gregory T. Angelo said. “With their ruling today, the Department of the Treasury and the IRS took a major step in that direction. Married same-sex couples can now breathe a little easier knowing that the labyrinthine web of red tape, confusion, and frustration that loomed over the heads of honest gay Americans in the aftermath of the Supreme Court’s DOMA decision has now been lifted.”