A principle of sound tax policy is that tax systems should be as simple as possible because the cost of complying with complex tax systems is a real economic loss that distorts incentives and economic behavior. In general, the marital deduction allows, upon the death of the first spouse, the value of any interest in property passing to the surviving spouse to be deducted from the decedent spouse's gross estate.
Prior to the Obergefell decision, some states, such as Michigan, required each individual who had income attributable to Michigan and who had filed a joint return with the IRS as a member of a same - sex couple to separately report adjusted gross income AGI for Michigan income tax as a single filer.
Toggle search Toggle navigation. State law generally requires references to the federal return and filing status to match the federal return, which would be impossible without further state-level guidance.
Get tips from Turbo based on your tax and credit data to help get you to where you want to be: Tax and credit data accessed upon your consent. In other words, if a marriage was legal in the state where the marriage was celebrated, then the couple is considered married for federal tax purposes.
Even at the federal level for example, more couples enjoy a marriage tax bonus instead of a marriage tax penalty. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice.
Two persons are married for federal tax purposes if they were lawfully married in a state whose laws authorize the marriage. Marital Deduction.
If so, which forms should the individual use to claim refunds? However, states have pursued viable options for accommodating this federal change with minimal effort that affect only a few taxpayers. Employer sponsors a group health plan as part of a cafeteria plan with a calendar year plan year.
It is important to note that portability must be elected on the estate tax return of the first deceased spouse, even if that spouse does not owe estate tax. For information on filing an amended return, go to Tax Topic. Page Last Reviewed or Updated: Mar It is expected that future guidance will address the following, among other issues: Plan amendment requirements including the timing of any required amendments.
For tax year and all prior years, same-sex spouses who file an original tax return on or after Sept. This page covers various issues regarding state tax conformity to the federal rules for same-sex couples, including:. Taxpayer starts with federal adjusted gross income and applies state rates and brackets.
Same-sex taxpayers must allocate income to two single returns using a state-provided schedule Schedule IT S. Same-sex couples may file jointly.