I already posted the basics of what last week’s DOMA ruling means for the tax situations of same-sex married couples. (Short version: nothing changes yet.)
Here are a few other thoughts on my mind, and things I am researching after the ruling:
- If the U.S. Supreme Court ultimately overturns DOMA, and DOMA is overturned retroactively, some couples would benefit from amending prior-year returns. Should those couples be filing those amended returns now? The consensus among those of us who follow this issue is that yes, those couples SHOULD be filing amended returns now. But it’s extremely important to get the proper disclosures filed.
- What about the issue of taxation of health insurance? If DOMA is overturned retroactively, what is the procedure for getting refunds of FICA taxes withheld on the taxable portion of the health insurance? Try having the employer amend their 941s and W-2s? File Form 843? I don’t know but am checking on this.
One note on filing amended returns: many, if not most, same-sex married couples WILL NOT want to amend. I only recommend filing an amendment if the couple stands to get a sizable refund. The reason is, the IRS will probably reject the amendment, which means suing for the refund through the courts. The decision to amend is not something to take lightly.
More information to come as I learn more.
Here are two other bloggers who also post about the tax issues of same-sex married couples: