I am most excited for the 2013 tax filing season as for the first time we will be able to file joint tax returns for our same-sex couples who are married. This is sure to be a very exciting event for them, and one well deserved. Not all of these couples will be happy though, as two high earner couples may end up paying more in taxes than when they filed single returns! Joint filing is usually more beneficial when the 2 individuals have widely differing incomes.
However, many open questions remain. For example, The IRS will allow joint filing for same-sex couples who live in states that allow same-sex marriages. There are 13 states +DC that allow these marriages. But what if the couple is married in a state that allows marriages, than they move to a state that does not allow them. The IRS has to rule on this, and hopefully will do this soon to clear up any potential confusion.
There are some other areas of importance for same–sex couples. Estate planning will be easier, as these folks will now be able to use the unlimited estate tax marital deduction. The same holds true for the gift tax laws. Employer health coverage will now be tax free for same-sex couples, and same-sex spouses of employees will now be able to qualify for survivor and death benefits under the qualified retirement plans.
As with any IRS rule, please consult your local advisor as laws change as do the implications of such laws.
Stuart Steinberg of Eaglerock Financial, Inc. has worked with families for more than 20 years, helping them work toward their financial goals through a holistic, well rounded approach rooted in objectivity, education, and empowerment. Stu is highly regarded by clients and colleagues for his unique combination of investment, CPA and entrepreneurial experience in the high net worth market.
8 November 2013