Update to the “DOMA” Ruling
The Treasury Department announced on August 29th that legally married same-sex couples will be treated as married for federal tax purposes regardless of what state they live in starting Sept. 16th, 2013. Any same-sex couple legally married in a jurisdiction that allows it has the freedom to move to other states that don’t allow it and the federal government will recognize the marriage for tax purposes.
“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide. It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve,” Treasury Secretary Jacob Lew said in a statement. “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.”
However, this ruling will not apply to same-sex couples in states that don’t allow same-sex marriage for social security purposes. It will also not apply to those same-sex couples in domestic partnerships or same-sex unions.
On June 26, 2013 the Supreme Court of the United States held Section 3 of the Defense of Marriage Act (“DOMA”) unconstitutional “as a deprivation of the liberty of the person protected by the Fifth Amendment” in United States v. Windsor, an estate tax case. As a result, the federal government must henceforth recognize same-sex marriages as valid if they are conducted lawfully in a state that allows them. This means that legally married same-sex couples will be able to file joint income tax returns and will qualify for other income and estate tax benefits previously associated with marriage between a man and a woman.
However, the DOMA ruling does not mean that states have to recognize same-sex marriage. Georgia has a constitutional ban on same-sex marriage. Therefore, same-sex couples in Georgia remain under the same rules that existed prior to the DOMA ruling. That is, same-sex couples may not file joint Georgia income tax returns. Further, a same-sex partner will not be treated as next of kin for purposes of medical decision making or sharing of medical information under HIPAA. Likewise, it will remain difficult for a same-sex partner to get appointed as guardian or conservator of their partner without proper estate planning documents.
Regardless of a same-sex couple’s marital status in Georgia, well drafted estate planning documents, including wills, health care directives and financial powers of attorney, can incorporate many of the otherwise available benefits for same-sex couples.
For more information regarding this or any other estate planning concern, please visit the Hoffman & Associates website at www.hoffmanestatelaw.com, call us at 404-255-7400 or send us an email.
In accordance with IRS Circular 230, this article is not to be considered a “covered opinion” or other written tax advice and should not be relied upon for IRS audit, tax dispute, or any other purpose. The information contained herein is provided “as is” for general guidance on matters of interest only. Hoffman & Associates, Attorneys-at-Law, LLC is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. Before making any decision or taking any action, you should consult a competent professional advisor.
