Same-sex Couples Tax Confusion & Burdens

Last updated on December 30, 2013

Taxes are complicated for same-sex couples. Certain states now  recognize same-sex marriage, but there are still others that do not. For tax purposes, if a couple moves from a state that recognizes same-sex marriage to a state that does not, their marriage is still recognized and they can file jointly. They must be married in a state that recognizes same-sex marriage to be able to file jointly and enjoy equal tax rights as their heterosexual counterparts.

With the filing season starting on 31^st January, same-sex couples will need to begin preparing their tax returns. The Department of Revenue has given new directions that will substantially increase the paperwork same-sex couples will need to do this year. In 2014, each same-sex spouse will be required to prepare a “pro forma” federal tax return to determine their state liability. This will need to be done even by those who do not owe any taxes. Many of the same-sex couples that owe taxes will need to prepare more than one tax return.

After the Supreme Court struck down DOMA (Defense of Marriage Act), same-sex married couples won a battle for equality. With 18 states now recognizing same-sex marriage, it is a huge step towards equal opportunities and equal burdens. Hopefully, the confusion and complexities for same-sex couples will end with time, as both they and the government understand and prepare for their tax obligations.