Today the IRS released the ruling on “Same-Sex Marriage,” or as we like to call it around here, “Marriage.” LGBT families & financial professionals have been waiting for months to see what IRS will do with the Supreme Court’s June decision in Windsor v. U.S., the so-called DOMA decision.
They said “…same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.” Unlike the Social Security Administration, which is so far holding to its Domicile rule, this would include both marriages where you formerly lived, and vacation marriages in the U.S., Canada, or elsewhere. However, it does not include civil unions, registered domestic partnerships or similar state-recognized relationships. (More information here: tinyurl.com/IRS-Marriage)
So, if you are legally married, let me be the first to congratulate you on IRS’ (belated) recognition! And you need to contact your tax & financial advisors immediately to discuss the implications. You will be required to file a 2013 federal income tax return as “Married” – either jointly or separately. Some of you will save taxes. Many of you will pay more, and you need to correct your withholding now to avoid an unpleasant April surprise.
Also, you will have the opportunity to amend returns back to 2010 (or perhaps 2009 if you contact me immediately), if the change to married status will result in a refund.
Of course, barring some unlikely event in the next few months, your marital status in Ohio, Kentucky, or Indiana will not change, so planning is multi-tiered.
This is a huge planning opportunity – for good or ill! Feel free to share this message with your friends, who may need professional preparation & planning advice now more than ever.
As always, contact me at 1TaxFinancial anytime via email or phone with your tax & financial questions and concerns.