Same-sex Couples and State Tax

Last updated on January 21, 2014

Same-sex couples face complex tax rules because many states do not recognize same-sex marriage. Because the Defense of Marriage Act (DOMA) was struck down by the Supreme Court, married same-sex couples are recognized as legally married and thereby eligible to file jointly for on federal returns. However, many states do not recognize same-sex marriage. In addition, states that do recognize same-sex marriage may have a different stance on unmarried domestic partners.

Those married and living in Utah may file joint state tax returns if they were married at the end of 2013. Utah had put a ban on same-sex marriage, which a federal judge struck down. When the state then made an appeal in court, the court’s decision was put on hold.

At present, same-sex married couples can file joint tax returns in thirteen states, including Iowa, Illinois, New York, Connecticut, Hawaii and Vermont. Taxpayers who are eligible to file as married filing jointly may also choose to file as married filing separately. It is expected that more states will accept same-sex marriage and allow married same-sex couples to file joint tax returns.

Due to the complexity in filing tax returns this season, same-sex couples should seriously consider hiring professional help or consulting a tax professional before filing taxes. It is important that a return is prepared correctly and filed on time. Make sure to fulfill all the requirements to successfully file your return.