While same sex couples and supporters of gay marriage lauded the U.S. Supreme Court decision in the United States v. Windsor, which struck down part of the Defense of Marriage Act (DOMA), the ruling leaves many same sex partners in a state of limbo in terms of the impact of more than a thousand federal programs and laws that are affected by marital status.  Although those same sex couples who were married in a state that legally recognizes same sex marriages will be able to claim the dependency deduction for a same gender marital partner under DOMA, many other GLBT couples are left in uncertain status and may be well-advised to take certain steps to avoid an unintentional waiver of certain federal rights and benefits, such as income tax benefits provided to married couples.

An understanding of the income tax consequences of the Windsor decision requires an analysis of the impact of the decision on DOMA.  The nation’s highest court struck down Section 3 of DOMA, which defined marriage under federal law as a legal union between a man and a woman.  This definition of marriage meant that same gender marriages that were previously lawful under state law did not qualify the marital partners for federal benefits and programs like joint filing status and the dependency deduction.  The downside of the Windsor decision for gay and lesbian couples is that the Supreme Court decided that the decision on how to define marriage should be left to individual states.

Because only 13 states and the District of Columbia have formally legalized gay marriage, many same sex couples who are not lawfully married still cannot take advantage of the federal tax benefits of marriage.  We have provided an explanation of the federal income tax filing impact of the DOMA decision.  Those who have been lawfully married in a state that recognizes same sex marriages will be able to file taxes jointly and claim a dependency exemption for a marital partner.  Those who are only in civil unions or otherwise not lawfully married under state law cannot file jointly or claim a dependency exception for a same sex partner.  Those in this situation also would not be able to use “married filing separately” or “head of household” status.

At the minimum, same sex couples may want to re-examine their federal income tax return and consider whether they would benefit from filing an amended return for the prior three tax filing years.  If you have other IRS tax questions, you should contact experienced Louisiana tax attorney Paul A. Grego.  We offer a free initial consultation so that we can answer your questions and provide an initial assessment of your situation.  Call us today at 504-302-4949 or email us.