Supreme Court Ruling on DOMA

Back in 2011, when New York passed the Marriage Equality Act, we discussed the issues particularly as they related to the Federal law, Defense of Marriage Act (DOMA).   For Federal purposes, DOMA defined marriage as between a man and a woman and allowed states which do not allow same sex marriage to not recognize same sex marriages performed in other states.  On June 26, 2013, the Supreme Court decided that much of DOMA is unconstitutional, since same sex married couples were not being treated equally under the law. Specifically, Section 3 of DOMA, which allowed the Federal government to deny benefits to same sex couples, was invalidated.  However, Section 2, which allows states to decide who may marry and which marriages to recognize, is still law.

This means that same sex couples married in New York and living in New York can expect the same rights as heterosexual married couples.  However, some issues remain murky, particularly for those same sex couples married in one state and now living in a state that does not recognize same sex marriage.  Benefit eligibility is often governed by the state in which a couple lives as opposed to the state in which the couple was married.

Social Security, for instance, grants eligibility based on the state of residence.  A spouse in a same sex marriage would not be eligible for spousal benefits if living in a state that does not recognize same sex marriage.  The Social Security Administration has issued a press release stating they are examining the issue but no indication of a change has been made.

The Federal Government, with direction from the Department of Justice, has begun the process of reviewing regulations and implementing the changes required by the Supreme Court ruling. 

There are over a thousand protections and responsibilities at the federal level that are triggered by marriage.  These include Social Security survivor benefits, immigration rights, family and medical leave, and the taxation code.  State issues only add to the list.  The Supreme Court stated that the invalidation of DOMA was to be effective 25 days after its ruling.  It will take quite a bit longer to work out the kinks.

If you are in a same sex marriage and wondering what to do with your tax returns, so are we!  Stay tuned… 

IRS Circular 230 Disclosure

Pursuant to U.S. Treasury Department Regulations, we are now required to advise you that any federal tax advice contained in this communication, including attachments and enclosures, is not intended by the Sender or Sandra G Johnson, CPA, P.C. to constitute a covered opinion pursuant to regulation section 10.35 or to be used for the purpose of (i) avoiding tax-related penalties under Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any tax-related matters addressed herein.