Same-Sex Couples Waiting on IRS Decision

Federalagencies are scrambling to figure out regulations following the Supreme Court’srecent DOMA decision.

Specifically,the IRS must decide whether to tax same-sex couples based on where they live orwhere they were married (the place of celebration), a decision that couldaffect the cost of health insurance. 

Same-sexcouples living in the 13 states recognizing same-sex marriage and the Districtof Columbia will not have to pay federal income tax on the value of employeehealth insurance coverage.

Ifthe IRS goes against their standard practice and decides to follow the place ofcelebration standards, couples living in states that don’t recognize same-sexmarriage could still avoid paying federal income tax on their spouse’s healthinsurance, but they will still have to pay state income tax.  The Office of Personnel Management hasdecided to follow the place of celebration standard, which gives hope tosame-sex marriage advocates.

See Michelle Andrews, Same-Sex Couples Seeking Insurance Wait forIRS Rules, NPR, Aug. 13, 2013.