Three Tax Tips for Married Same-Sex Couples

Since 2013 the Internal Revenue Service (IRS) has finally started to recognize marriage between same-sex marriages under certain legal conditions. The marriage had to be valid legally and after 2015 it was legalized in all states. Same-sex marriages are now held to the same tax standard as any other couple.

Understand the Rules of Your State

Even though federal law has allowed for same-sex marriage, many individual states still deny statutory benefits of legal marriage to same-sex couples. It’s important to determine what additional rules there might be for your state from your tax department.

Determine Your Filing Status 

Married couples have the ability to file either jointly or separately depending on their financial circumstances. Which one they file for is up to the couple, but they may reap the same tax benefits as any other married relationship. The status of married filing jointly often allows for a lower rate of taxes. Married filing separately can sometime have drawbacks, and if there are any children involved in the relationship they may only be financially claimed by one parent.

Calculating Results

In some cases, it may be worth filing separately instead of filing together. This all depends on the financial situation of the couple. It’s worth the effort to calculate the tax return under both conditions.

Conclusion

Same-sex couples have achieved a significant step forward in the last few years. With the ability to file separately or together, the same-sex newlyweds are now in further control of their finances. Use your newly accessible filing status to the advantage of your family.

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