WASHINGTON -- Legally married same-sex couples will be treated as married for federal tax purposes -- even if they move to a state like Louisiana that bars such unions, the Treasury Department announced Thursday. The ruling is in response to the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act, which had...
WASHINGTON -- Legally married same-sex couples will be treated as married for federal tax purposes -- even if they move to a state like Louisiana that bars such unions, the Treasury Department announced Thursday.
The ruling is in response to the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act, which had defined marriage as only between a woman and a man.
Under the Treasury 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 Individual Retirement Account and claiming the earned income tax credit or child tax credit.
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.
Same sex couples married before 2013 can amend their previous years' taxes, though generally no further than 2010 -- to reflect their marriage status. Filing jointly can mean tax savings for many couples.
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, according to the Treasury Department.
Louisiana does not recognize same sex marriages. Such marriages performed in other states won't enable couples to file jointly for their state income tax returns, according to state tax officials.