The U.S. Department of Treasury and the Internal Revenue Service have decided that same sex couples that are legally married will be treated as a normal married couple when it comes to federal tax purposes.
The best part is this is something that will be applicable regardless of whether or not the couple resides in a jurisdiction that recognizes this type of marriage or does not recognize this type of marriage.
What does this mean?
This ruling makes it so same sex couples are going to be treated the same as any other married couples when it comes to federal tax purposes including gift, income, and estate taxes.
Whenever marriage is a factor for federal tax provisions including, earned income tax credit, child tax credit, contributing to an IRA, taking the standard deduction, filing status, claiming dependency or personal exemption, or employee benefits this ruling will be applicable.
Whom does this ruling apply to?
Anyone who is considered legally same sex married in one of the 50 states, a U.S. territory, a foreign country, or the District of Columbia is covered under the ruling. The ruling is not in place for registered domestic partnerships, civil unions, or any other type of similar relationship that is only recognized under the state’s law.
Furthermore, when filing same sex married couples will have the option of filing married filing jointly or married filing separately as their filing status. Additionally, same sex married couples are going to have the option of filing amended returns for one or more prior tax years thanks to the statute of limitations.
The statute of limitations
Usually, the limitation for filing a refund claim is three years from the date the refund was filed or two years from when the tax was paid. Which ever occurred later. This means that refund claims can be filed for years 2010-2012. Some taxpayers may even have the option of filing claims for 2009 and earlier if they have special circumstances such as a signed agreement with the IRS to keep their statute of limitations open.
If employees have purchased same sex spouse health insurance through their employer on an after tax, basis they may use the amount that they paid for coverage as pre-tax and exclude it from their income.
Filing a claim for a refund
To claim your refund you have to use Form 1040X – Amended U.S. Individual Tax Return. If you need to claim for gift or estate taxes, you have to use Form 843- Claim for Refund and Request for Abatement. Additionally, information for filing an amended return can be found at Tax Topic 308.
Guidance for the future
When it comes to insuring that you file your taxes correctly always consider Turbo Tax as your first choice. With Turbo Tax, you can be 100% sure that you are going to have your taxes done right.
Not to mention the fact that Turbo Tax customers receive the added benefit of having trained tax agents available to answer any and all of the questions and concerns that they may have. All you have to do is answer a few questions and they will do all of the hard work for you.