Obama administration recognizes same-sex couples under tax law

The Obama administration on Wednesday moved to provide equal tax treatment for same-sex marriages as part of the Supreme Court’s landmark decision this summer. 

The Treasury Department and the IRS said the proposed regulations will clarify that marriage between two people — whether same-sex or opposite sex — will be covered under federal tax law, implementing the high court’s June ruling that the Constitution guarantees a right to same-sex marriage in all states.

{mosads}“The proposed regulations confirm that terms in the federal tax code relating to marriage should be interpreted to include same-sex spouses as well as opposite-sex spouses, ensuring that all are treated equally under the law,” said Treasury Secretary Jack Lew.

The regulations define the terms “husband” and “wife” to include same-sex and opposite-sex spouses.

Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, praised the announcement.

“Today, with new rules enshrining marriage equality in our tax laws, we’re taking another important step in a very long march,” Wyden said.

“To guarantee equal dignity in the eyes of the law, our policies must be built around fairness and acceptance. That’s what these proposed rules are all about,” he added.

The regulations will apply to all federal tax marriage provisions including filing status, claiming personal and dependency exemptions, contributing to an IRA, and claiming the earned income tax credit or child tax credit.

The announcement builds on the 2013 IRS revenue ruling implementing the Supreme Court’s decision in United States v. Windsor where same-sex couples married in jurisdictions recognizing their unions would be covered under federal tax law.