IRS Changes for Same-Sex Married Couples
So you’re a same-sex couple who can now marry in your state (or marry in a state other than your home state-where allowed). That’s great! What they don’t tell you when you get your marriage license and walk down the aisle is that your financial picture will change. In many ways, you’ll see things become simplified and more beneficial. In other ways, some of your finances may become more complex and you may wind up paying more for things-such as your taxes.
In its Revenue Ruling 2013-17, the IRS declared that all gender-specific wording in the tax code be changed to gender neutral so that it would include all married couples. What the ruling also clarified is that if you are married in a jurisdiction that allows for same-sex marriage (in this country or in a foreign country), you may file your federal income taxes as a married couple. This is regardless of whether or not your home state recognizes your marriage. Which is awesome!
With all these recent changes, you’re bound to have a lot of questions about filing your Federal Tax Return*. To help answer your questions, The IRS put together a list of Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married under State Law. It can be found on the IRS website at: www.irs.gov/uac/Answers-to-Frequently-Asked-Questions-for-Same-Sex-Married-Couples.
The IRS website also has links to the following resources for same-sex married couples:
- IRS YouTube Video: Tax Information About Same-Sex Marriage in English / Spanish / ASL
- IR-2014-22, New IRS Video Helps Same-Sex Couples; Joins Extensive IRS Library Of Online Tax Tips
- IR-2013-72, Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples
- Frequently Asked Questions on Estate Taxes (estate tax marital deduction for same-sex couples)
- Frequently Asked Questions on Gift Taxes (gift tax marital deduction for same-sex couples)
If you have additional questions after viewing the IRS website or need additional help to determine what is appropriate for your situation, consult your legal, tax, and/or financial advisor.
*The deadline for filing your 2015 Federal Tax Return is April 18, 2016. This is not a typo. The regular tax return filing deadline is April 15. However, due to the Washington D.C. Emancipation Day Holiday being observed on April 15 instead of April 16, 2016, Tax Day is on the following Monday.
Partnership Wealth Management is comprehensive financial services company. We are committed to providing our clients with financial planning and wealth management services to help them make the most of their investments. At Partnership Wealth Management we have a long history of working with the LGBT community. Among our many services we offer financial planning for same sex couples as well as estate planning for same sex couples. Financial planning is an important part of preparing for the future, contact us today to get started: www.partnershipwm.com.