Married same-sex couples will be treated for federal tax purposes just like opposite-sex couples, according to a recent IRS announcement. Same-sex couples who were married in a jurisdiction, domestic or foreign, that recognized their marriage as legal will be treated as married for federal tax purposes even if they live in a state that does not recognize same-sex marriages as legal.
The rule, known as the “state of celebration” rule, will allow same-sex couples to live anywhere they like, provided they were married where same-sex marriages were legal.
The IRS rule applies to all federal taxes — income, gift, and estate taxes. Areas that will be affected include such things as personal and dependent exemptions, social security benefits and taxes, IRA contributions and other IRA rules, and tax credits.