+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
States have begun issuing individual income tax filing guidance for same-sex couples, Bloomberg BNA State Tax Law Editor Melissa Fernley writes in this week's issue of the Weekly State Tax Report.
Same-sex couples must file their Colorado income tax returns using the same filing status as they claim for federal purposes, the Colorado Department of Revenue clarified in its guidance on the recent IRS ruling.
Colorado has always required its residents to file state tax returns using the same filing status as was claimed on the federal return. However, since Colorado does not recognize same-sex marriage, it was unclear whether they would allow same-sex couples to file jointly, even if they were able to do so for federal purposes.
Other states which do not recognize same-sex marriage have taken varying routes. Louisiana will require same-sex couples which are eligible for joint federal filing to still file separate individual returns at the state level, the department noted in Revenue Information Bulletin 13-024. Because Louisiana begins its calculation of state income from federal adjusted gross income, same-sex couples filing taxes in Louisiana will need to create a pro forma federal return in order to calculate state income tax.
Wisconsin has decided to create new tax form Schedule S, Allocation of Income to be Reported by Same-Sex Couples Filing a Joint Federal Return. The schedule is required for same-sex taxpayers filing their 2012 federal income tax return using a filing status of married filing jointly, and filing original federal and Wisconsin returns with the state on or after Sept. 16, 2013. Each individual will need to file a separate Wisconsin income tax return using the filing status of single or head of household, and add Schedule S, which will allocate the income reported on the joint federal return.
States which allow same-sex couples to marry in the state are also releasing information, elaborating on IRS Revenue Ruling 2013-17 by providing guidance on amended returns and refunds. New York released TSB-M-13(5)I, (10)M, which clarifies that the personal income tax returns of same-sex couples may be amended by applying the federal rules in effect for married taxpayers in the same year. Amended returns may only be filed for years eligible under the statute of limitation, which is generally three years from the date the return was filed or two years from the date the tax was paid, whichever is later. Same-sex married couples must file their 2011 and 2012 tax returns using a married filing status even if they filed that year's federal return as single or head of household.
Text of the Colorado notice is available at http://www.colorado.gov/cs/Satellite/Revenue/REVX/1251645922423.
Text of the Louisiana Information Bulletin is available at http://www.rev.state.la.us/forms/lawspolicies/RIB%2013-024.pdf.
Text of the Wisconsin notice is available at http://www.revenue.wi.gov/taxpro/news/130906.html.
Text of the New York technical memorandum is available at http://www.tax.ny.gov/pdf/memos/multitax/m13_5i_10m.pdf.
Text of the IRS ruling is available at http://www.irs.gov/uac/Newsroom/Treasury-and-IRS-Announce-That-All-Legal-Same-Sex-Marriages-Will-Be-Recognized-For-Federal-Tax-Purposes;-Ruling-Provides-Certainty,-Benefits-and-Protections-Under-Federal-Tax-Law-for-Same-Sex-Married-Couples.
Article written by Melissa Fernley, State Tax Law Editor at Bloomberg BNA.
In other developments…
IRS Clarifies Tax Treatment of Same-Sex Spouses , by Bradley Arant Boult Cummings LLP
Los Angeles Business Tax amnesty program announced , a new alert by PwC
Nexus Created Through Ownership in Pass-Through Entities , Ohio's State Tax Blog explains
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).