It will apply even if a gay couple lives in a state that does not recognize same-sex marriage. IRS recognizes same-sex marriages

The Treasury Department and Internal Revenue Service announced on Thursday that legally married same-sex couples will receive the same tax treatment and benefits as heterosexual couples, a decision that follows the Supreme Court ruling this summer that overturned the Defense of Marriage Act.

This tax treatment will apply even if a gay couple lives in a state that does not recognize same-sex marriage so long as they were married in a state or country that does.


“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide,” Treasury Secretary Jack Lew said in a statement. “It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve.”

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The administration said that same-sex couples can begin filing tax returns as “married filing jointly” or “married filing separately” for the 2013 tax year.

“This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change,” Lew said.

The decision was quickly cheered by supporters of equal marriage rights.

Chad Griffin, the president of the Human Rights Campaign, said “crucial” benefits will now be available to married same-sex couples.

“With today’s ruling, committed and loving gay and lesbian married couples will now be treated equally under our nation’s federal tax laws, regardless of what state they call home,” Griffin said. “These families finally have access to crucial tax benefits and protections previously denied to them under the discriminatory Defense of Marriage Act.”

GLAAD spokesperson Wilson Cruz said the ruling helps “America moves one step closer to ‘liberty and justice for all.’”

A range of federal tax benefits will now be available to same-sex married couples, including employee benefits, how inheritances and estates are treated and the ability to claim the child or earned income tax credit.

Now, for example, if a same-sex married couple has health insurance through an employer, they will be able to treat the benefit as pre-tax income for both taxpayers.

This also changes the way estates can be passed between gay couples. Legally married same-sex couples will now have the same unlimited exemption that applies to heterosexual couples.

The tax treatment of same sex couples has played a pivotal role in the broader legal debate over gay marriage.

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The June 26 Supreme Court decision stemmed from an estate suit brought by New York state resident Edith Windsor.

Windsor and her partner married in 2007, but the marriage was recognized only by the state, not the federal government. When Thea Clara Spyer died, she left her estate to Windsor, who received a $360,000 tax bill for the inheritance.

If the federal government had recognized their union as a marriage, Windsor would have owed nothing because spouses are granted the unlimited exemption.

Thursday’s announcement could mean, however, that some same-sex couples will receive a bigger tax bill.

For instance, when couples with generally equal incomes file jointly, any tax breaks they could receive are often not as great as if they were filing as single — the so-called “marriage penalty.”

But if their incomes are not similar, couples could avoid a bigger tax bill by filing jointly because their overall income would not be moved into a higher tax bracket.

The Congressional Budget Office estimated in 2004 that 1.2 million people identified themselves as living in same-sex partnerships. It said at the time that recognizing these gay couples as married would increase revenue by nearly $400 million over a five-year period.

On a conference call with reporters Thursday, a Treasury official said the government has not calculated the number of couples living in states that do not recognize same-sex marriage so it is unable to measure the revenue effect of the ruling.

The ruling, which will affect any tax return filed after Sept. 16, does not apply to domestic partnerships, civil unions or other formal relationships that may be recognized under state law.

The IRS and Treasury also ruled that same-sex couples are entitled to amend some past tax returns to reflect their marriage.

The Treasury official said the IRS did not expect to create a specialized unit to process past returns because the agency does not anticipate a large number of filings.