The Supreme Court struck down the section of DOMA (Defense of Marriage Act) that required same-sex spouses to be treated as unmarried for purposes of filing their Federal Income Tax Return.
What does this mean for tax professionals? For one, it means that we won’t have to file those crazy tax returns for legally married same-sex partners in community property states. The ones where income had to be combined and then split 50/50.
It also means that the taxpayers should consider filing amended returns to claim potential refunds for the following changes.
-A joint tax return can be filed.
-The ability to use the marital deduction for unlimited transfers free of gift tax.
-A surviving spouse can stretch out distributions from a qualified retirement plan or IRA after the death of the other spouse.
-The unused estate exclusion can pass to the surviving spouse.
Theses changes could make a difference in some of your clients tax liabilities. We are always here to help if you have any questions.