2016 Tax Olympics: 
Dealing With Same-Sex Tax Filing (Day 9)

Dealing with tax issues are complex as hell. Now dealing with tax issues for same-sex couples is just insane. Make sure that your tax accountant is an expert in filing same-sex tax returns. Just don't hire any regular tax preparer to save a couple of pennies. Since I'm honest, I can admit that I'm not one of those experts. However, I can research the basics if I was required too. This post will deal with the top three questions your accountant should know about same-tax filing. If he or she doesn't know the answers then I recommend interviewing another tax accountant. Trust me, taxes are not a game. All three questions will come directly from the Internal Revenue Service website (irs.gov). As with other tax issues, knowing the basics are extremely important.

BRONZE MEDAL 

 When are individuals of the same sex lawfully married for federal tax purposes?

For federal tax purposes, the IRS looks to state or foreign law to determine whether individuals are married. The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages.

SILVER MEDAL

If same-sex spouses (who file using the married filing separately status) have a child, which parent may claim the child as a dependent?

If a child is a qualifying child under section 152(c) of both parents who are spouses (who file using the married filing separate status), either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time during the taxable year. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.

GOLD MEDAL

Can same-sex spouses file federal tax returns using a married filing jointly or married filing separately status?

Yes. For tax year 2013 and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status. For tax year 2012 and all prior years, same-sex spouses who file an original tax return on or after Sept. 16, 2013, generally must file using a married filing separately or jointly filing status. For tax year 2012, same-sex spouses who filed their tax return before Sept. 16, 2013, may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status. For tax years 2011 and earlier, same-sex spouses who filed their tax returns timely may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status provided the period of limitations for amending the return has not expired. A taxpayer generally may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later.

The link to more FAQs can be found at: https://www.irs.gov/uac/answers-to-frequently-asked-questions-for-same-sex-married-couples