Forbes magazine recently reported on one of the questions facing tax accountants this season: how does the Supreme Court’s ruling against part of the Defense of Marriage Act (DOMA) affect federal income tax filing? The ruling itself is complex, striking down a section of DOMA that denied federal recognition for same-sex marriage, but leaving states the right to refuse to recognize same-sex marriages.
So if a couple marries in one of the 13 states allowing same-sex marriage (and is thereby federally recognized as married), but then moves to a state like Florida that does not recognize same-sex marriage, how then should the couple file? In states that charge an income tax, the consequences are even more confusing.
The IRS has not yet indicated whether they recognize a couple’s “place of ceremony” or state of residence as grounds for filing taxes as married or single. Couples are then faced to determine whether they will pay higher rates of income tax as a part of their federally recognized union file as single and realize some tax savings (in some cases).
At Bullock, Garner, & Leslie, we are your Melbourne Florida accounting firm dedicated to helping you navigate changing laws and emerging tax practices. We can help protect your interests as you file your personal income taxes and help you to navigate the murky waters of changing federal tax policy. Call us now to get started!