The U.S. Department of the Treasury and the IRS ruled on Thursday, August 29th, that same-sex couples legally married in jurisdictions that recognize their marriages will be treated as married for federal tax purposes.
The ruling means that couples who were legally married in a jurisdiction recognizing same-sex marriage will be treated as married even if the couple has moved to a state that does not recognize same-sex marriage.
This ruling assures that same-sex couples will be able to move freely throughout the nation and not lose their right to file federally as a married couple. Other federal agencies have announced similar decisions, allowing legally married couples who live in states who don’t recognize their marriages, to be able to apply for federal benefits and military benefits.
Same sex couples will be treated as married for all federal tax purposes, including the following:
- Income, Gift and Estate Tax;
- Filing status;
- Claiming personal and dependency exemptions;
- Taking the standard deduction;
- Employee Benefits;
- Contributing to an IRA; and
- Claiming the earned income tax credit or child tax credit.