Tax Impact of the Supreme Court’s Same-Sex Marriage Decision

IN THE KNOW

On June 26, the U.S. Supreme Court ruled that same-sex couples have a constitutional right to marry, making same-sex marriage legal in all 50 states. For federal tax purposes, same-sex married couples were already considered married, under the Court’s 2013 decision in United States v. Windsor and subsequent IRS guidance — even if their state of residence didn’t recognize their marriage.

From a tax planning perspective, the latest ruling means that, in states where same-sex marriage hadn’t been recognized, same-sex married couples no longer will need to deal with the complications of being treated as married for federal tax purposes but not married for state tax purposes. So their tax and estate planning will be simplified and they can take advantage of state-level tax benefits for married couples. But in some cases, these couples will also be subject to some tax burdens, such as the “marriage penalty.”

Same-sex married couples should review their tax planning strategies and estate plans to determine what new opportunities may be available to them and whether there are any new burdens they should plan for. Employers will need to keep a close eye on how these developments will affect their tax obligations in relation to employees who have same-sex spouses. For more information, contact us at 617.471.1120.

Jenna McQuinn

About Jenna McQuinn

Jenna McQuinn is the Director of Marketing at O'Connor & Drew P.C, where she works to align the goals of the firm with consistent brand messaging. She previously worked as a Social Media and Digital Marketing Manager for several brands.



Jenna McQuinn
Author: Jenna McQuinn
Jenna McQuinn is the Director of Marketing at O'Connor & Drew P.C, where she works to align the goals of the firm with consistent brand messaging. She previously worked as a Social Media and Digital Marketing Manager for several brands.