DOMAIntroduction to the Federal Tax Issues of Legally Married Same Sex Couples after the Windsor Supreme Court Case DecisionSpeakersPaul La Monaca MST CPADirector of EducationNational Society of T ID: 854292
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1 NATIONAL SOCIETY OF TAX PROFESSIONALSNAT
NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS DOMAIntroduction to the Federal Tax Issues of Legally Married Same Sex Couples after the Windsor Supreme Court Case DecisionSpeakersPaul La Monaca, MST, CPA,Director of Education,National Society of Tax ProfessionalsDon Williamson, JD, CPA, LLM in Taxation NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS The Trea
2 sury Department and the Internal Revenue
sury Department and the Internal Revenue Service have recognized all legal samesex marriages for federal tax purposes. USDeptTreasuryandtheIRSruledthatsamesexcouples,legallymarriedjurisdictionsthatrecognizetheirmarriages,willbetreatedmarriedforfederaltaxpurposes Marriedpersonswhosemarriagerecognizedthefederallevelarenowrequiredchangetheirfilingstatusfromsinglemarried NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL
3 SOCIETY OF TAX PROFESSIONALS Samesexcou
SOCIETY OF TAX PROFESSIONALS SamesexcoupleswhoarelegallymarriedaretreatedasmarriedforallfederaltaxpurposesAsresulttheUSWindsorruling,samesexcoupleswillbetreatedmarriedforallfederaltaxpurposesandthosetaxprovisionswheremarriagefactor Filing status Personal and dependency exemptions Standard deductions Income, gifts, estate taxes Employee benefits and contributions to an IRA Claiming Earned Income Tax Credit or Ch
4 ild Tax Credit NATIONAL SOCIETY OF TAX P
ild Tax Credit NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS Any samesex marriage legallyentered into in one of the 50 states, the District of Columbia, a US territory, or a foreign country is covered by the ruling. Therulingdoesnotapply Registereddomesticpartnerships Civilunions Similarformalrelationshipsrecognizedunderstatelawresult Beginningwithreturns,legallymarriedsexcouplesgene
5 rallymustfilefederalincometaxreturnsusin
rallymustfilefederalincometaxreturnsusingeithermarriedfilingjointlymarriedfilingseparatelyfilingstatus NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS For any tax year prior to 2013, individuals in samesex marriages may file original or amended return. Maychoosedothisnotrequired Yearsmuststillbeopenunderstatutelimitations Generally,thestatutelimitationsforfilingrefundclaimthreeyearsfro
6 mthedatethereturnwasfiled,twoyearsfromth
mthedatethereturnwasfiled,twoyearsfromthedatethewaspaid,whicheverwaslater Therefore,refundclaimscanbefiledfortaxyearsand NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS The Service and Treasury also ruled regarding health insurance and federal tax provisions. Amountspaidforhealthinsurancecoveragepurchasedaftertaxbasisfromemployerforsamesexspousemaybetreatedpretax,thereforeexcludablefro
7 mincome NATIONAL SOCIETY OF TAX PROFESSI
mincome NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS Filing a claim for a prior year refund for individuals in samesex marriages. UsethestandardForm1040X,AmendedIndividualIncomeTaxReturn GiftestatetaxrefundclaimsshouldbefiledForm843ClaimforRefundandRequestforAbatement NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS IRS Notice 2013Streamlined procedures for
8 employers filing refund claims for payr
employers filing refund claims for payroll taxes on previouslytaxed health insurance and fringe benefits. DescribesmethodsproceduresforusingForm Specialadministrativeproceduresfor Separatespecialadministrativeproceduresforyearsprior NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS Revenue Ruling 2013 Includesdiscussiontheterms,“spouse”,“husband”,“wife”,
9 47;husbandandwife”and“marriage
47;husbandandwife”and“marriage”thepersonlegallymarriedpersonthesamesex Rev2013alsoaddressessamesexmarriagevalidlyenteredintostatewhoselawsauthorizesamesexmarriageeventhoughthestatewhichtheyaredomicileddoesnotrecognizethe authoritysamesexmarriage Addressesforfederalpurposeswhethertheterm“marriage”includessamesexindividualswhohaveenteredintoregistereddomesticpartnership,civilunionothersimi
10 larformedrelationshipthatnotdenominatedm
larformedrelationshipthatnotdenominatedmarriageunderthelawstheirstate 9 NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS The GAO reports nearly 200 IRC provisions with marital status as a factor in tax liability, e.g., FilingStatusandTaxBrackets EarnedIncomeTaxCredit ChildandDependentCareCredits EducationTaxCreditsEducationDeductions Adoptioncredits EmployerAdoptionAssistanceExclusion
11 FlexibleSpendingAccounts(FSA) BasisIssu
FlexibleSpendingAccounts(FSA) BasisIssuesPropertySettlementsRelatedDivorce DeductibilityHealthInsurancePremiumsforSelfEmployedIndividuals NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS Additional IRC provisions with marital status issues: ContributionDependentCareAccounts JointandSeveralLiabilityIssues RelatedPartyTransactions QualifiedJointVentureElectionsonSchedule EstatePlanningIs
12 sues GiftTransfers PensionDistributionRu
sues GiftTransfers PensionDistributionRules InnocentSpouseandInjuredSpouseIssues NewMedicareTaxonWagesandEarnedIncome NewMedicareTaxonNetInvestmentIncome Andmanymore NATIONAL SOCIETY OF TAX PROFESSIONALSNATIONAL SOCIETY OF TAX PROFESSIONALS For more information RevenueRuling IRSNotice PublicationCommunityProperty Windsor(SUPCT262013111AFTR2013 DefenseMarriageAct(DOMA) CometheNSTPbooththeExhibitHallandNSTPtablema