Federal tax rules for same-sex couples have recently been issued in response to the Supreme Court decision in Windsor, No. 12-307 (U.S. 6/26/13). This landmark case invalidated a key provision of the 1996 Defense of Marriage Act (“DOMA”) and resulted in major changes in the tax landscape for many same-sex partners.
These new tax rules were laid out in I.R. 2013-72 on August 29, 2013 and Revenue Ruling 2013-17 on September 16, 2013 and are effective on that date. (Note that taxpayers who wish to rely on the terms of this Revenue Ruling for earlier periods may choose to do so, as long as the statute of limitations for the earlier period has not expired. More on this below.)
Although there are still some unresolved issues, the following will lay out many of the basic federal income tax rules for same-sex married couples:
These are just some of the tax and financial implications in this area. Same-sex couples affected by these changes should explore estate planning, retirement planning, employee benefits, and social security implications with their estate planning attorney, accountant and financial adviser team.
Stay tuned because this area will continue to evolve and change.
As required by United States Treasury Regulations, you should be aware that this communication is not intended by the sender to be used, and it cannot be used, for the purpose of avoiding penalties under United States federal tax laws.
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