A big congratulations to all the same-sex couples that got married last year! As you move forward into wedded bliss, you’ll have the opportunity to decide how to file your taxes and make the most of your financial benefits.
In California, same-sex couples were allowed to legally wed as of June 2013. In August 2013, the IRS began recognizing same-sex couples as married for tax purposes. This means that, as a legally married couple, you can file a joint federal return or married filing separately, even if you are living in a state that doesn’t recognize same-sex marriage. Filing as a married couple is now a breeze, requiring only one 1040 form! You also have the ability to amend your past 3 returns if you were married prior to this federal change.
Just like all legal married unions, same-sex couples cannot file as head of household unless applicable, or be claimed as dependent. If you have children and are filing separately, either spouse may claim them as a dependent. If you are filing jointly, the Earned Income Tax Credit is available, allowing you to gain a tax credit, and lower tax liability.
If you receive health care coverage from your employer or private insurance, you are eligible to share those benefits with your spouse, so be sure to take advantage of these offerings, as your policy becomes effective in 2015. You now have access to joint retirement benefits, as well as the ability to transfer assets and take on your spouse’s inheritance without federal gift tax or estate tax.
For further tax and filing advice following an important life change, be sure contact Paragon Accountants. We’re happy to help you begin a bright financial future!
