How does gay marriage effect taxes

Sign up for our monthly Lifestyle newsletter for entertainment news, healthy living tips and more. But since the U. The ruling — that the states, not the federal government, properly regulate marriage — will affect more than 1, federal statutes and regulations. An IRS decision in late August may be the most significant clue so far that many federal agencies may seek to level the playing field for all legally married same-sex couples. Does the Supreme Court's ruling mean that the federal government has to recognize same-sex marriage? Yes, at least for couples who were married and currently reside in states that allow same-sex marriage — called recognition states.
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What Same-Sex Marriage Means for State Tax Revenues

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Federal Filing Status Options for Same-Sex Couples

Does the Supreme Court know all the paperwork it creates when it hands down some of its decisions? In some cases, there will be financial implications. As a small business owner, you probably have a pretty good idea if any of your employees fall into this category. If the calculations have been done assuming a single status, it may need to be adjusted. Let your employees know the impact a change in marital status would make, if any. They may decide to request a specific amount for income-tax-withholding purposes. If you work with insurance brokers or agents on these items, meet with them to make sure you fully understand the situation and your options.
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8 Ways Legalizing Same Sex Marriage Is Good For The Economy

By Kevin Drawbaugh , Kim Dixon. The U. Treasury ruling, following a landmark Supreme Court decision in June, means that whether a married gay couple lives in New York, which recognizes gay marriage, or Oklahoma, which does not, federal tax benefits and responsibilities apply. The Supreme Court on June 26 invalidated a key portion of a federal law, known as the Defense of Marriage Act, which had defined marriage as between a man and a woman.
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The following questions and answers provide information to individuals of the same sex who are lawfully married same-sex spouses. For federal tax purposes, the IRS looks to state or foreign law to determine whether individuals are married. The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages. For tax year and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status.
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