IRS makes more same-sex couples eligible for federal tax treatment as a married couple

IRSSMLLPn response to the U.S. Supreme Court’s June decision regarding same-sex marriage, the IRS recently clarified that married same-sex couples will be treated as married for all federal tax provisions in which marriage is a factor, such as filing status, dependent exemptions and child credits, and gift and estate tax breaks.

Significantly, the Supreme Court decision extended federal marriage-related benefits only to same-sex married couples in states recognizing their union; the IRS ruling expands eligibility for marriage-related federal tax benefits to same-sex married couples in all states, as long as they were married in a jurisdiction recognizing their marriage.

In light of the ruling, same-sex married couples should:

  • Evaluate how changing their filing status to “married” will affect their 2013 tax liability, and factor that into their year end tax planning
  • Determine whether they can receive a tax refund for previous years if they file amended returns as a married couple
  • Decide whether any changes to their estate plans are warranted to take advantage of the federal gift and estate tax benefits available to married couples

These are only some of the tax areas requiring attention. Please contact us for more information on the impact of the IRS ruling.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s