Same-Sex Married Couples Will Soon Receive Federal Benefits

On June 26, 2013, the U.S. Supreme Court issued its decision in United States v. Windsor and struck down Section 3 of DOMA (Federal Defense of Marriage Act), which defined marriage as a union between a man and a woman. This historic ruling marks a monumental step in the marriage equality movement. 

The Windsor case involved Edith Windsor and Thea Spyer, who married in Canada in 2007, after being in a relationship for 40 years. When Spyer died in 2009, she left her entire estate to Windsor. Windsor sought to claim the federal estate tax exemption for surviving spouses, but was barred from doing so by Section 3 of DOMA. As a result, Windsor was forced to pay $363,053 in taxes on Spyer’s estate, which she would not have had to pay if she’d been Spyer’s husband. She argued that DOMA, which prevented her from being considered Spyer’s spouse for federal purposes, cost her $363,053.

In a 5-4 decision, with the majority opinion written by Justice Anthony Kennedy, the Supreme Court found that the section of DOMA defining marriage as between a man and a woman violates the Equal Protection Clause and is therefore unconstitutional.

Now, same-sex married couples living in one of the 13 states that recognize gay marriage (or D.C.) are considered legally married for federal purposes and can enjoy the same federal benefits that opposite-sex married couples enjoy, including immigration status, Social Security benefits and federal tax benefits - they will file federal tax returns just like heterosexual spouses do. This ruling is expected to take effect toward the end of July 2013. This decision does not apply to same-sex couples in a civil union or those that are currently registered as domestic partners – couples must be legally married to qualify for federal benefits.

Although it's clear that same-sex married couples who live in jurisdictions where same-sex marriage is legal will benefit from this decision, there are still some questions left to be answered for same-sex married couples who live in any of the other 37 states that don't recognize same-sex marriage. For example, how will the I.R.S. treat the union of a same-sex couple that married legally in Rhode Island, but then moved to Texas, where same-sex marriage is banned by constitutional amendment? What about same-sex couples that live in a state with a gay marriage ban, but visit and get married in a state where it’s legal? Going forward, will the federal government recognize marriages based on the “place of celebration” – where the couple was married, or based on the “place of residence” – where the couple lives.

This uncertainty will continue until we get clarification from the federal government (or a court ruling) regarding how such marriages will be treated. When further guidance is released from the I.R.S. or other agencies, we’ll be sure to update our site.