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Internal Revenue Ruling 2013-17

Tuesday, Sep. 24, 2013

IRS revenue ruling 2013-17, which took effect Monday, confirms that the federal government will recognize same-sex couples legally married in a state that recognizes same-sex marriages as legally married for federal tax purposes, regardless of where they live.This is known as the "State of Celebration" rule.

IRS has stated that it plans to allow same-sex married couples to file income tax refunds for tax years 2010, 2011, and 2012 so same sex couples can choose to file original or amended returns for these years.

SCU provides health care coverage for same-sex spouses and had included the value of that coverage in the employee's gross income, per federal law.Now that DOMA has been defeated and the IRS has issued its revenue ruling, affected employees will be able file amended tax returns to recover federal income tax paid on the value of the health coverage going back to 2010.Whether it is financially beneficial to file an amended return should be discussed with your personal tax advisor.

Importantly, IRS guidelines exclude registered domestic partnerships, civil unions, or other similar formal relationships recognized under state law.The federal government has only made these federal tax benefits available to married individuals, not registered domestic partners.

Payroll is currently working on implementing changes in the system and process so that an employee who has a same-sex spouse that is provided benefits through SCU will no longer have the value of those benefits added to the employee as imputed income.

If your status has changed from registered domestic partner to spouse because you have gotten married please contact HR know so that we can ensure you receive the appropriate tax treatment going forward!

Tags: tax

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