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Gay Spouses in All States Now Married Under U.S. Tax Law

Posted on: August 31st, 2013 by kresta in the afternoon

Gay spouses in all U.S. states will be treated as married under federal tax law even if local authorities don’t recognize their marriages, in what gay-rights advocates are calling a victory.
The decision by the Treasury Department today implements the U.S. Supreme Court’s decision in June to overturn part of the federal Defense of Marriage Act, which had forbidden the Internal Revenue Service from letting married homosexual couples file joint tax returns.
                   

Gay Spouses in All States Can File Joint Taxes, Treasury Says
Mario Tama/Getty Images
U.S. Air Force Senior Airman Shyla Smith, right, and Courtney Burdeshaw during their wedding ceremony at the Manhattan Marriage Bureau the day after the U.S. Supreme Court ruling on DOMA on June 27, 2013 in New York City.

Gay Spouses in All States Can File Joint Taxes, Treasury Says

 

   

The U.S. government’s decision is a win for same-sex couples who were married in one of the 13 states, the District of Columbia or foreign countries that recognize such relationships and now live in one of the 37 states that don’t.

“This is a very positive development,” said Derek Dorn, a partner at Davis & Harman LLP in Washington and outside counsel to the Human Rights Campaign, which advocates for lesbian and gay Americans. “Additional details need to be worked out in more nuanced areas of the tax law.”
More than 200 provisions in the tax code and federal regulations reference marriage, affecting a range of financial matters such as retirement accounts and health benefits, according to the IRS. Couples with unequal incomes will benefit from the marriage bonuses in the tax code, while those with relatively equal incomes will have to pay more.

The ruling also will make it easier for spouses to inherit money tax-free.

Read the rest at: http://www.bloomberg.com/news/2013-08-29/gay-spouses-in-all-states-can-file-joint-taxes.html

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