Tax Impact After the Supreme Court’s DOMA Decision
After the U.S. Supreme Court’s decision to strike section 3 of the Defense of Marriage Act, a federal law restricting the rights of same-sex married couples, some of those couples are now facing new tax issues.
While the court’s decision is expected to result in big savings in estate taxes, dual-income couples making good money may have to pay higher income tax. Also, in states that do not recognize the marriages of same-sex couples, there is a great deal of uncertainty created by the ruling. For instance if a same sex couple married in California, which recognizes their union, gets business income from Florida, which doesn’t recognize the union, how should it be reported for tax purposes? The answer is unclear.