Eligibility Rules for Federal Benefits Vary by Federal Agency

Many same-sex couples get married in a state that recognizes same-sex marriage. Previously, those marriages, although valid in a same-sex marriage equality state, were not recognized by the United States federal government because the federal Defense of Marriage Act (DOMA) specifically defined marriage as a union between a man and a woman.

Since the U.S. Supreme Court struck down DOMA’s definition of marriage as unconstitutional, the federal government must now recognize valid same-sex marriages.

However, the eligibility rules for benefits do vary among federal agencies. Some agencies, such as the US Citizenship and Immigration Services, the IRS and the US Office of Personnel and Management, will recognize all valid same-sex marriages, regardless of where same-sex married couples reside. All legally married, same-sex couples will qualify for immigration status, federal tax benefits and federal employee benefits (if either spouse works for the federal government), even if they reside in states that don’t recognize their same-sex marriage.

But other agencies, such as the Social Security Administration, only recognize marriages that are valid in the state where the couple resides. So a same-sex married spouse living in a non-recognition state will not qualify for Social Security benefits under his or her spouse’s work records.

State Recognition

Will another state, such as Texas, recognize a valid same-sex marriage from New York? When it comes to state recognition, the law is ever-changing. A few states, California and Washington, explicitly recognize same-sex marriages performed in other states or countries. It’s also probably safe to assume that any of the jurisdictions where same-sex marriage is legal will also recognize same-sex marriages from other states. As of September 2013, these include California, Connecticut, Delaware, D.C., Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont and Washington. Although Wyoming and New Mexico have not legalized same-sex marriage, courts in these states may recognize a same-sex marriage in order to grant a divorce.

Meanwhile, 36 states have constitutional amendments or state laws that restrict marriage to one man and one woman. None of these states are required to recognize same-sex marriages from other states for any purpose. However, some judges in states where same-sex marriage is not legal will and have recognized a same-sex marriage, for example, to grant a divorce. But without a uniform law that says all states must recognize out of state same-sex marriages, it’s impossible to say what will happen in a non-recognition state.

If you have specific questions, you should contact a local family law attorney to find out what judges are doing in your particular county.

In a word, yes. Tax matters that can be pretty simple for heterosexual couples can get quite complicated for gay and lesbian couples.

However, as a result of two key rulings in 2013, tax issues just got a lot easier for many same-sex married couples.

The U.S. Supreme Court’s June 26, 2013 decision in the Windsor case made it clear that same-sex married couples living in one of the 14 U.S. jurisdictions that recognize same-sex marriage would qualify for federal benefits previously limited to opposite-sex married couples. However, the Court did not address whether the IRS (or other federal agencies) would recognize the marriages of same-sex married couples living in non-recognition states.

In August 2013, The U.S. Department of the Treasury ruled that all same-sex couples that are legally married in any U.S. state, the District of Columbia, a U.S. territory or a foreign country will be recognized as married under all federal tax provisions where marriage is a factor. This includes provisions governing:

• filing status
• personal and dependency exemptions
• standard deductions
• employee benefits
• IRA contributions
• the earned income tax credit, and
• the child tax credit.

The Treasury Department further clarified that federal recognition for tax purposes applies whether a same-sex married couple lives in a jurisdiction that recognizes same-sex marriage (such as California) or a non-recognition jurisdiction (such as Texas).

Now, legally married same-sex couples will file their 2013 federal income tax return using either the “married filing jointly” or “married filing separately” filing status. They may also choose to file an amended return as a married couple and a refund claim for tax years 2010, 2011 and 2012. And they can move about the country knowing that their federal filing status will not change.

However, the ruling made it clear that same-sex couples in a civil union or those that are currently registered as domestic partners will not qualify for federal tax benefits – couples must be legally married to qualify. However, some of these same-sex couples may find relief by claiming their partner as a dependent on their return.

On a state level, same-sex married couples will generally only receive state benefits if they live in a recognition state. Same-sex married couples living in non-recognition states will fill out their state returns as single and their federal returns as married. This can get complicated, so it’s best to consult a tax professional that is knowledgeable in same-sex tax issues for help.

What are domestic partnership benefits?