Supreme Court DOMA Decision Affects Estate Planning for Same Sex Spouses

The Supreme Court of the United States’ ruling that a portion of the Defense of Marriage Act (“DOMA”) is unconstitutional may allow same sex spouses who were legally married under state law at the time they filed individual Federal income tax returns to amend past tax returns and receive a refund.  The DOMA ruling’s implications will also affect the gift and estate tax marital deduction, portability of a spouse’s estate and gift tax credit, retirement benefits, and the future tax filing status for same sex spouses.  Many tax experts believe that the Court’s ruling has retroactive effects.  This means that same sex spouses may be able to amend previous tax returns to claim refunds for prior tax years if the taxpayers can show that they would have paid less if the marriage had been recognized by the IRS.  Same sex couples can contact tax expert Fred Jacobs at Bach & Jacobs to review the effect that the Supreme Court’s decision may have on their federal taxes.