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Tax Implications for Same-Sex Couples After DOMA Ruling

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The Green Group
June 26th, 2013

Today, June 26, 2013 the Supreme Court repealed aspects of the Defense of Marriage Act, same-sex partners who reside in a state which recognizes same-sex marriage will be entitled to a plethora of benefits which were previously denied to them.

There will be some restriction of benefits if you are a same sex couple who was married in a state which recognizes it but live in a state which does not.  The U.S. Department of Defense, however, will distribute military veteran’s spousal benefits to same-sex couples based on laws in the state where they got married.

While there is no clarification yet on the impact for states which recognize civil unions, The Green Group is staying on top of current information and will release an update as soon as it’s available.

Benefits of marital status and joint return filing include:

  1. Filing joint tax return, both spouses to report all their income, credits and expenses. In many cases filing joint is beneficial for tax purposes
  2. Possibility of filing married filing separately if benefits outweigh married filing joint status
  3. In case only one spouse works, entailed to file joint tax return and claim deductions & exemption for non-working spouse
  4. In case spouse dies during tax year, still allowed to file joint tax return for that year
  5. Entitled to insurance benefits on family plans (healthcare, dental)
  6. Entitled to innocent spouse relief if it qualifies
  7. Emergency leave from work to attend sick spouse
  8. Green Card petitions for spouse that is non USA resident
  9. Entitlement to social security benefits and other benefits upon the death of the spouse
  10. Estate planning benefits (estate tax exemption)

States/Territories that recognize same-sex marriage:

  1. California
  2. Connecticut
  3. Delaware
  4. Iowa
  5. Maine
  6. Maryland
  7. Massachusetts
  8. Minnesota
  9. New Hampshire
  10. New York
  11. Rhode Island
  12. Vermont
  13. Washington
  14. District of Columbia

States which recognize Civil/Legal Unions

  1. Colorado
  2. Hawaii
  3. Illinois
  4. New Jersey
  5. Nevada
  6. Oregon
  7. Wisconsin

At The Green Group, we strive to provide clients, friends and family with timely information.

Please call any Green Group adviser if you have any questions.

Aggie Kagan: akagan@greenco.com

Megan Conheeney: mconheeney@greenco.com

www.greenco.com

Pursuant to IRS Circular 230 regulation: "Any tax advice expressed was not intended or written to be used, and cannot be used, by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. If this advice was written to support the promotion or marketing of partnership or other entity, investment plan, or arrangement to any taxpayer then the advice was written to support the promotion or marketing of the matters addressed by the written advice and the taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser."

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Today, June 26, 2013 the Supreme Court repealed aspects of the Defense of Marriage Act, same-sex partners who reside in a state which recognizes same-sex marriage will be entitled to a plethora of benefits which were previously denied to them.

There will be some restriction of benefits if you are a same sex couple who was married in a state which recognizes it but live in a state which does not.  The U.S. Department of Defense, however, will distribute military veteran’s spousal benefits to same-sex couples based on laws in the state where they got married.

While there is no clarification yet on the impact for states which recognize civil unions, The Green Group is staying on top of current information and will release an update as soon as it’s available.

Benefits of marital status and joint return filing include:

  1. Filing joint tax return, both spouses to report all their income, credits and expenses. In many cases filing joint is beneficial for tax purposes
  2. Possibility of filing married filing separately if benefits outweigh married filing joint status
  3. In case only one spouse works, entailed to file joint tax return and claim deductions & exemption for non-working spouse
  4. In case spouse dies during tax year, still allowed to file joint tax return for that year
  5. Entitled to insurance benefits on family plans (healthcare, dental)
  6. Entitled to innocent spouse relief if it qualifies
  7. Emergency leave from work to attend sick spouse
  8. Green Card petitions for spouse that is non USA resident
  9. Entitlement to social security benefits and other benefits upon the death of the spouse
  10. Estate planning benefits (estate tax exemption)

States/Territories that recognize same-sex marriage:

  1. California
  2. Connecticut
  3. Delaware
  4. Iowa
  5. Maine
  6. Maryland
  7. Massachusetts
  8. Minnesota
  9. New Hampshire
  10. New York
  11. Rhode Island
  12. Vermont
  13. Washington
  14. District of Columbia

States which recognize Civil/Legal Unions

  1. Colorado
  2. Hawaii
  3. Illinois
  4. New Jersey
  5. Nevada
  6. Oregon
  7. Wisconsin

At The Green Group, we strive to provide clients, friends and family with timely information.

Please call any Green Group adviser if you have any questions.

Aggie Kagan: akagan@greenco.com

Megan Conheeney: mconheeney@greenco.com

www.greenco.com

Pursuant to IRS Circular 230 regulation: "Any tax advice expressed was not intended or written to be used, and cannot be used, by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. If this advice was written to support the promotion or marketing of partnership or other entity, investment plan, or arrangement to any taxpayer then the advice was written to support the promotion or marketing of the matters addressed by the written advice and the taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax adviser."