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Same-sex tax filing changes official in Virginia and Wisconsin

October 14, 2014

Same-sex-marriage-filing-status-irs-1040The Supreme Court earlier this month gave same-sex couples the ability to get married in five more states when it refused to hear appellate cases that had struck down the states' bans on such ceremonies.

Gay and lesbian couples in Indiana, Oklahoma, Utah, Virginia and Wisconsin lined up soon after the High Court non-ruling to exchange vows.

Now the affected state tax departments must adjust their rules to accommodate the newlyweds.

Virginia is for all lovers: The Old Dominion's tax officials were quick to act.

On Oct. 7, the day after the Supreme Court inaction, Virginia's Department of Taxation issued an official notice regarding the tax situations of affected couples. It states, in part:

Same-sex marriages that are recognized for federal income tax purposes will now be recognized for Virginia income tax purposes. As a result, same-sex couples who are legally married under any state law may file joint Virginia income tax returns, and compute items on their Virginia income tax returns as married individuals. Alternatively, such couples may file their Virginia income tax returns as married couples filing separately.

A same-sex married couple who filed a joint federal income tax return and separate Virginia income tax returns in a previous taxable year may, but is not required to, amend their Virginia income tax returns for any corresponding taxable years within the three-year statute of limitations to file joint Virginia income tax returns. Any same-sex married couple electing to do so must compute items on their amended Virginia income tax return as married individuals.

Wisconsin tax rewrite: Wisconsin tax officials issued a similar formal announcement on Oct. 13. The Wisconsin Department of Revenue website states, in part:

Upon consulting with the Wisconsin Department of Justice, the Department of Revenue recognizes same-sex marriage as legal in Wisconsin.

Previously, same-sex couples who filed a joint federal tax return were required to file as single or head of household for Wisconsin. Schedule S was used to separate the income reported on the federal joint tax return to the separate Wisconsin returns. Schedule S should no longer be filed with a Wisconsin tax return.

Badger State tax officials also note that lawfully married same-sex couples who filed their tax returns before this Oct. 16th — that is, by the Oct. 15 extended filing deadline — may choose, but are not required, to amend their Wisconsin tax returns and file as married filing jointly, married filing separately or, if qualified, as head of household.

Still waiting on other three: Indiana's Attorney General sent county clerks a letter with guidance on issuing marriage licenses to same-sex couples, but there's no tax word from the state's Department of Revenue.

The wait also continues in Oklahoma and Utah.

I'm sure, though, that those three tax offices are working on the filing matter for the same-sex newlyweds in their jurisdictions.

2013 federal tax filing reminder: The Internal Revenue Service has a reminder for same-sex couples who were legally married last year, regardless of where they live.

Husbands and wives legally married in a state or foreign country that recognizes same-sex marriage generally must use a married filing status on federal tax returns. That's either married filing jointly or married filing separately.

This choice applies even if the couples live in places that do not recognize same-sex marriage.

And such couples who got an extension to file their 2013 returns have until tomorrow, Oct. 15, to submit their Form 1040 claiming the proper married filing status.

You also might find these marriage related posts of interest:

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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