JUST IN !!!! All Legal Same-Sex Marriages Will Be Recognized for Federal Tax Purposes

8/29/2013

 Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples 

WASHINGTON
  --
The U.S.  Department of the Treasury and the Internal Revenue Service (IRS) today ruled  that same-sex couples, legally married in jurisdictions that recognize their  marriages, will be treated as married for federal tax purposes. The ruling  applies regardless of whether the couple lives in a jurisdiction that recognizes  same-sex marriage or a jurisdiction that does not recognize same-sex marriage. 

The ruling implements federal tax aspects of the June 26th Supreme Court decision invalidating a key provision of the 1996 Defense of  Marriage Act.


“Today’s ruling provides certainty and clear, coherent tax filing  guidance for all legally married same-sex couples nationwide. It provides access  to benefits, responsibilities and protections under federal tax law that
all  Americans deserve,” said Secretary Jacob J. Lew. “This ruling also assures  legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.”

Under the ruling, same sex couples will be treated as married for all federal tax purposes, including income and gift and estate taxes. The ruling applies to all federal tax provisions where marriage is a factor, including
  filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA, and claiming the earned income tax credit or child tax credit.

Any same-sex marriage legally entered into in one of the 50 states, the  District of Columbia, a U.S. territory, or a foreign country will be covered by  the ruling. However, the ruling does not apply to registered domestic  partnerships, civil unions, or similar formal relationships recognized under  state law. 

Legally-married same-sex couples generally must file their 2013 federal income tax return using either the “married filing jointly” or “married filing separately” filing status.

Individuals who were in same-sex marriages may, but are not required to,  file original or amended returns choosing to be treated as married for federal  tax purposes for one or more prior tax years still open under the statute of  limitations.  


Generally, the statute of limitations for filing a refund claim is three  years from the date the return was filed or two years from the date the tax was  paid, whichever is later. As a result, refund claims can still be filed
for tax  years 2010, 2011, and 2012. Some taxpayers may have special circumstances (such  as signing an agreement with the IRS to keep the statute of limitations open)  that permit them to file refund claims for tax years 2009 and earlier. 

Additionally, employees who purchased same-sex spouse  health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.


How to File a Claim for Refund

Taxpayers who wish to file a refund claim  for income taxes should use Form 1040X, Amended U.S. Individual Income Tax Return.

Taxpayers who wish to file a refund claim  for gift or estate taxes should file Form 843, Claim for Refund and Request  for Abatement. 

For information on filing an amended return, go to Tax  Topic 308, Amended Returns at http://www.irs.gov/taxtopics/tc308.html or the Instructions to Forms 1040X and 843.  Information on where to file your amended returns is available in the instructions to the form.    

Future  Guidance

Treasury and the IRS intend to issue  streamlined procedures for employers who wish to file refund claims for payroll  taxes paid on previously-taxed health insurance and fringe benefits provided to  same-sex
spouses. Treasury and IRS also intend to issue further guidance on  cafeteria plans and on how qualified retirement plans and other tax-favored  arrangements should treat same-sex spouses for periods before the effective date  of this Revenue Ruling.