Federal Tax Treatment of Same-Sex Marriage

1. Joint Tax Returns for Married Couples

Under IRC §6013, married couples may file joint federal income tax returns.
Marital status is generally determined by state law where the couple resides.

2. Defense of Marriage Act (DOMA)

DOMA (1996) defined “marriage” and “spouse” as relationships between men and women for federal purposes.
Section 3 of DOMA was struck down by the Supreme Court in U.S. v. Windsor (2013), allowing federal recognition of same-sex marriages if legal under state law.

3. IRS Ruling Post-Windsor (Rev. Rul. 2013-17)

IRS recognizes same-sex marriages for federal tax purposes, regardless of where the couple lives.
This includes:
- Joint filing
- Estate tax marital deduction
- Tax-free employer health benefits
- Other federal tax benefits
Exclusions: Domestic partnerships, civil unions, or similar relationships not legally defined as “marriage” are not recognized as “marriage” for tax purposes.
Effective date: Prospective from September 16, 2013, but can be applied retroactively under certain conditions (e.g., refunds or amended returns).

4. Obergefell v. Hodges (2015)

The Supreme Court held that all states must recognize same-sex marriages, effectively legalizing them nationwide.

5. IRS Regulations (2016)

Issued Reg. §301.7701-18, codifying Windsor and Obergefell rulings:
- A marriage is valid for federal tax purposes if it is legal where it was performed.
- Same-sex marriages performed abroad are valid if recognized by any U.S. state.
- Domestic partnerships/civil unions are still excluded.

6. Earlier Court Decisions (Pre-Windsor)

Meuller v. Comm’r (2002) and Merrill v. Comm’r (2009) denied same-sex couples joint filing status because they were not legally married under their state laws at the time.
Gill v. OPM (2010) found Section 3 of DOMA unconstitutional under Equal Protection, reinforcing Windsor.