[VIDEO] Tax Benefits for Same Sex Marriage Couples

In June 2013, the Supreme Court struck down DOMA and in effect federally legalized same sex marriage. At the time, there was very little clarity on the implications but subsequently the IRS has issued guidance on the matter. First of all, if you have been legally married in one of the 13 U.S. States, District of Columbia or one of the 15 foreign countries that legally recognize same sex marriage, for federal tax purposes you are considered married, even if the State where you reside does not recognize same sex marriage. For years 2010, 2011 and 2012, taxpayers in same sex marriages have the right to, but are not obligated to, review and amend the tax returns as married filing jointly. In many cases there could be a benefit to amending the tax returns by claiming deductions that were not available filing as two single taxpayers. For 2013 and moving forward, any taxpayers in same sex marriages that are legally recognized must file as Married Filing Jointly or as Married Filing Separately as their opposite sex married counterparts. In some cases, however; this can actually be less advantageous to same sex couples because of the marriage penalty. Perhaps the greatest benefit to the ruling is the exemption of gift and estate taxes between spouses. Where previously there was only a $5 million dollar exemption for gift and estate tax between a married same sex couple, same sex couples now enjoy the exemption to gift or inherit money from their spouse without limit. There are many intricacies to the new tax law that our office can sit down and explain to you. If you are in a same sex marriage, contact our office today to set up an appointment and assist you in tax planning for prior years and the years to come.