Yesterday, I sent you an email that the IRS had not yet decided whether to recognize same-sex marriage for purposes of filing a joint federal tax return. I also indicated that I believed this was clearly contrary to the Supreme Court decision stating that refusal to grant full federal benefits to same-sex couples was unconstitutional.
Today, August 29, 2013, the Treasury Department and IRS announced that all same-sex couples who are legally married will be recognized as such for federal tax purposes, even if they state they live in does not recognize their union.
This is the broadest rule change yet as a result of the Supreme Court decision in June that struck down portions of the Defense of Marriage Act (DOMA). As of the 2013 tax year, same-sex spouses who are legally married will not be able to file federal tax returns as if either were single, Instead, they must file together as “married filing jointly” or individually as “married filing jointly.”
Properties with low-income housing tax credits will now be able to accept same-sex couples where all residents are full time students if all the adults in the unit are married, since they will now be eligible to file a federal joint tax return. It does not matter if the residents live in a state that does not recognize same-sex marriage, as long as they were legally married in a state that does.
Owners and managers of LIHTC properties should be aware that this ruling applies to legal marriages, but does not apply to civil unions, registered domestic partnerships or other legal relationships.