Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Same Sex Marriages Recognized by the IRS - KJT 090313

Same Sex Marriages Recognized by the IRS - KJT 090313

Ratings: (0)|Views: 10|Likes:
Same-sex couples legally married in states that recognize same-sex marriages will now be treated as married for federal tax purposes. In a recent IRS revenue ruling, the IRS now interprets the terms “spouse”, “husband and wife”, “husband”, and “wife” to include same-sex couples married in jurisdictions that legally recognize same-sex marriages. This is a 180 degree turn from prior interpretations of these terms in prior rulings. In fact the ruling is in direct response to the U.S. Supreme Court’s ruling in United States v. Windsor in which the Supreme Court held that the Defense of Marriage Act’s (DOMA) definition of marriage being between a man and a woman was unconstitutional, violating equal protection principles.
Same-sex couples legally married in states that recognize same-sex marriages will now be treated as married for federal tax purposes. In a recent IRS revenue ruling, the IRS now interprets the terms “spouse”, “husband and wife”, “husband”, and “wife” to include same-sex couples married in jurisdictions that legally recognize same-sex marriages. This is a 180 degree turn from prior interpretations of these terms in prior rulings. In fact the ruling is in direct response to the U.S. Supreme Court’s ruling in United States v. Windsor in which the Supreme Court held that the Defense of Marriage Act’s (DOMA) definition of marriage being between a man and a woman was unconstitutional, violating equal protection principles.

More info:

Published by: Hunt and Associates, PC on Sep 04, 2013
Copyright:Traditional Copyright: All rights reserved

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

06/20/2014

pdf

text

original

 
 
Same-Sex Marriages Recognized by the IRS
Same-sex couples legally married in states that recognize same-sex marriages will now betreated as married for federal tax purposes. In a recent IRS revenue ruling,the IRS now interprets the t
erms “spouse”, “husband and wife”, “husband”, and “wife” to include same
-sexcouples married in jurisdictions that legally recognize same-sex marriages. This is a 180 degreeturn from prior interpretations of these terms in prior rulings. In fact the ruling is in directres
 ponse to the U.S. Supreme Court’s ruling in 
United States v. Windsor  in which the SupremeCourt held t
hat the Defense of Marriage Act’s
(DOMA) definition of marriage being between aman and a woman was unconstitutional, violating equal protection principles.So what does this ruling affect?1. Income TaxesThis ruling will most dramatically affect income taxes for married same-sex couples.Same-sex married couples can now file tax returns jointly or 
married but filing separately
.Among other benefits, they can claim the same personal and dependency exemptions, takestandard deductions, and claim the earned income tax credit or child tax credit.Employees that pay for same-sex health insurance coverage provided by their employer can treat the amounts paid as pre-tax dollars and excludable from income. Cafeteria plans,qualified retirement plans and other employment related tax-favored arrangements are alsoaffected by this ruling.2. Estate and Gift TaxesAdditionally, the ruling affects federal estate taxes and gift taxes. The annual gift taxexclusion for married couples is $28,000.00 in 2013 versus only $14,000.00 for individuals.Consequently same-sex married couples can gift up to $28,000.00 to an individual withouthaving to file a gift tax return or pay a gift tax.For estate tax purposes, the same rules that apply to married couples will apply, meaningthat same-sex couples may be able to insulate over $10.0 million of their estate from federalestate taxes. (See Estate Planning and the Fiscal Cliff ). When the first spouse passes away the surviving spouse can claim the unlimited marital deduction,
meaning that after the first spouse’sdeath, the surviving spouse will not pay any federal estate taxes if the first spouse’s estate
exceeds the annual exclusion in effect in the year that the spouse passes away ($5.25 million in2013). The surviving spouse can also utilize  portability and other tax savings tools that are available to married couples.3. Domestic Partnerships/Civil UnionsThe ruling specifically states that it does not apply to domestic partnerships, civil unionsor similarly defined relationships.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->