A Few of the Tax Benefits Impacted by the DOMA Ruling

As I have previously discussed, the Supreme Court found the Defense Against Marriage Act to be unconstitutional, thus allowing married same-sex couples in states allowing gay marriage to receive hundreds of benefits available to married couples under federal law. Now, same sex couples have the option to collect the higher of the two social security benefits when one spouse dies. Additionally, a gay person may also collect on a dead spouses federal or military retirement benefits.

Another change is the ability for a gay couples to inherit above the tax exemption threshold without having to pay estate taxes on the inheritence. Just like with the estate tax married same sex couples can gift eachother property and not have to worry about paying taxes. Same-sex couples will also no longer have to pay any of the tax on their partners health insurance when the benefits are provided through an employer. 

See Martha C. White, How the DOMA Ruling WIll Affect Gay Couples’ Finances, Business Time, Jun. 27, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.