Benefits to Same-Sex Spouses Now Nontaxable in 32 States

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By  Allison M. Gatrone

Same-sex marriage became legal in 13 states in October, following the Supreme Court's refusal Oct. 6 to consider court decisions that overturned several states' bans.

Same-sex marriages are legal in Indiana, Oklahoma, Utah, Virginia, and Wisconsin as of Oct. 6; Colorado, Oct. 7; Nevada and West Virginia, Oct. 9; North Carolina, Oct. 10; Idaho, Oct. 15; Alaska and Arizona, Oct. 17; and Wyoming, Oct. 21.

Same-sex marriages that are recognized for federal income tax purposes are now recognized in these states for state tax purposes. Health benefits for spouses of employees in such marriages who work in these states are to be nontaxable, and income tax should not be withheld from such benefits.

Guidance regarding withholding procedures for benefits provided to same-sex spouses in 2014 has been released by Colorado, Idaho, North Carolina, Utah, Virginia, West Virginia and Wisconsin. Additional states are to issue such guidance.

Same-sex marriage also is legal in California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington.

To contact the reporter on this story: Allison Gatrone in Washington at agatrone@bna.com

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com