Tax Tip Podcast or Blog Post for Real Estate Professionals having a Same Sex Marriage with Tax Planning

Same Sex Marriage with Tax Planning

In 2013, the Supreme Court struck down Section 3 of the Defense of Marriage Act (DOMA) in U.S. v. Windsor. The decision has broad tax implications.

For one, same-sex married couples can file joint federal income tax returns. It should be noted, however, that joint returns aren’t always beneficial. If both partners in a same-sex marriage have high taxable incomes, filing a joint return could result in more taxes being paid.

For example, the modified adjusted gross income threshold amounts for calculating the net investment income tax is $200,000 for taxpayers filing as single, $250,000 for couples filing joint returns, and $125,000 in the case of a married taxpayer filing a separate return.

The IRS has clarified that, for federal tax purposes, if a same-sex couple is married in a state where it is legal to perform same-sex marriages, the marriage is recognized for federal tax purposes regardless of where the married couple lives (i.e., whether or not they live in a state that recognizes same-sex marriages). However, individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law, but not denominated as a marriage under the laws of that state, are not treated as being married for federal tax purposes.

Another result of the Supreme Court decision is that tax-free employer provided benefits to married same-sex partners that were previously includible in income under federal law are now excludible from income, so refunds can be claimed on this basis as well.

Also, the estate of a partner in a same-sex marriage is entitled to the marital deduction, which means the partner’s estate passes tax-free to his or her spouse. Other benefits of the Court’s decision include married same-sex partners being eligible to receive federal benefits if their partner is a federal employee, as well as married same-sex partners being eligible for social security survivor benefits upon the death of a partner.

Thus, as you can see, the Supreme Court’s decision presents financial and tax planning opportunities.

Brenda Fitch Real Estate Professional
Brenda Fitch Real Estate Professional

Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email if you have any questions or would like additional information.

74478 Highway 111 #3
Palm Desert, CA 92260

Toll Free: (877)CPA-Help or (877)272-4357
Cell: (760)567-3110
Fax: (760)836-0968


P.S. My firm is based upon referrals. Please feel free to refer my firm to anyone you know that is looking for a new CPA and/or tax preparer. Thank you in advance.

Allow us to Help you complete your Tax Returns from 1913 to present (100+ Years) and for any of the 50 States.

(Updated 03/27/2021 320-142)

Published by Don Fitch, CPA

Offers in Compromise, Wage Levy Releases, Installment Agreements, IRS Audits, and much more IRS assistance. Also, allow us to Help you complete your Tax Returns from 1913 to present (100+ Years) and for any of the 50 States.

Leave a Reply