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IRS to Treat All Legal Marriages "Equally" for Tax Purposes

THE WASHINGTON POST
By Josh Hicks

WASHINGTON, DC---The Treasury Department and Internal Revenue Service announced on Thursday that they would treat legal same-sex marriages the same as heterosexual marriages for federal tax purposes. Same-sex couples married before the DOMA ruling will have the option of filing amended returns for one or more prior tax years, according to the announcement. Treasury Secretary Jack Lew said in a statement that the move “assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.” Other federal agencies this year have announced similar decisions relating to the Supreme Court ruling, allowing federal benefits for same-sex spouses of federal workers and military personnel. But those policies affect only a subset of the gay population, whereas Thursday’s announcement impacts virtually every same-sex couple in the United States. [link]
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Tara Siegel Bernard | NYTimes said…
First the best news: If you would have received a refund by filing a joint federal return, you can generally collect that money for the last three years. Gay couples can now plan for how their financial lives will change when it comes to federal taxes, even though big questions remain about benefits like Social Security. So generally speaking, most people will be able to amend their returns for 2010, 2011 and 2012. The ruling applies to a broad range of tax rules where marriage comes into play, and some will result in major savings. Some couples will no longer have to pay thousands of dollars in taxes on the value of their spouse’s health insurance, something their opposite-sex peers did not have to pay. Individuals can inherit a spouse’s retirement account and other assets without any extra tax implications. Nonworking spouses will be able to open an I.R.A. on their spouse’s earnings record. Married couples will avoid, or at least defer, paying federal estate taxes because spouses can transfer money and property to each other — both during their lives and after death — without federal tax consequences. A same-sex spouse will become the default beneficiary on all qualified retirement plans like pensions and 401(k)s. And the list goes on.
Sun Sep 01, 10:07:00 AM EDT
Christopher Yugo said…
Earlier this spring, Indiana made a significant change to its tax laws which will likely affect many of your estates. On May 8, Governor Pence signed a bill that, among other things, repealed the Indiana Inheritance Tax. The repeal was made retroactive to Jan. 1, 2013. What this means is that the estate of anyone dying after Dec. 31, 2012 will no longer be subject to inheritance tax. Since the tax has been completely repealed, there isn’t anything that you need to do to see the tax savings.

http://www.in.gov/dor/3807.htm
Sun Sep 01, 01:21:00 PM EDT
IceMiller, LPA said…
On May 8, 2013, Gov. Pence signed legislation repealing the Indiana inheritance tax for the estates of all individuals who pass away in 2013 or in later years. What follows are a few important points to keep in mind about the effect of this repeal.

(1) Indiana Inheritance Tax Before 2013. The inheritance tax continues to apply to the estates of individuals who died in 2012 or before.

(2) Indiana Probate and Trust Administration. Although no longer required to file an Indiana inheritance tax return, the executor (personal representative) of an estate still still must collect and inventory the estate's assets, deal with creditors, pay any income taxes, distribute assets according to the estate plan, and provide an accounting to the interested parties.

(3) Federal Estate Tax. Without the hindrance of the Indiana inheritance tax, the federal exemption amount can now be utilized more flexibly for married couples on the first spouse's death to benefit multiple generations.

(4) Income Tax Basis Documentation. Finally, date of death values for estate assets have continued importance and should be documented to establish the beneficiary's increased income tax basis.

http://www.in.gov/dor/3807.htm
Sun Sep 01, 01:26:00 PM EDT
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