In August, the Internal Revenue Service issued Revenue Ruling 2013-17. This ruling concerns same-sex marriages and how they affect the filing of federal income tax returns. According to the IRS, individuals who are lawfully married under state law should file their federal tax return as married.
Minnesota legalized same-sex marriages as of Aug. 1, 2013. Now, with the IRS ruling, same-sex married couples in Minnesota will be treated the same under state and federal tax laws. Taxpayers who file their federal return as married should do the same for Minnesota.
The IRS also ruled that it would accept, but not require, amended or original income tax returns from same-sex married couples for all open, prior tax years. Taxpayers who file an amended federal return for the prior year should also file an amended Minnesota return using the same filing status.
The IRS also recognizes married couples who legally wed in a state that allows same-sex marriages, but now live in a state that does not recognize their marriage. Under the IRS ruling and Minnesota law, the term “marriage” does not include registered domestic partnerships, civil unions, or other similar formal relationships recognized under state law- whether between same-sex or opposite-sex individuals.
Employers should follow the marital status an employee enters on their Form W-4 or W4-MN.
Employer-paid health insurance premiums for same-sex spouses should be treated the same as for opposite-sex couples, effective Aug. 1, 2013. Do not include these benefits as taxable wages for withholding purposes. This also applies to flexible spending accounts and other uses of pre-tax dollars.
Click here for the informational article: Minnesota Tax Information for Same