NEW YORK (MainStreet)Looking for some money in the mailbox, same-sex spouses may be rushing to file amended tax returns, in anticipation of a sizable refund check. The Supreme Court's landmark decision ruling the Defense of Marriage Act as unconstitutional will certainly have a significant impact on the financial planning of married same-sex couples, but while many things have changed, some stay the same and many questions remain. The IRS is still reviewing the decision and has yet to issue new guidance to taxpayers -- especially concerning the estimated $200 million in tax refunds to some 75,000 married same-sex couples.
What hasn't changed
"Every couple in a long-term committed relationship, whether married or not, should create a mutually developed financial plan addressing income, expenses, savings, investments and major purchases," says Marty Martin of Aequus Wealth Management in Chicago. "Every couple ought to have a will and, depending upon their situation, also have in place ways to transfer assets without having to go through probate -- such as joint bank accounts, payable upon death bank accounts and life insurance policies. Depending upon the state, each couple should also have a health care power of attorney, as well as a general power of attorney."
What has changed
Married same-sex couples are now recognized by the federal government in the same manner as married opposite-sex couples, entitling them to specific benefits unavailable before. But there is a caveat.
"Federal recognition does not mean state recognition," says Martin. "For instance, a married same-sex couple is able to file jointly under the federal IRS regulations but not necessarily under state law -- unless the state legally recognizes this same-sex couple as married. In essence, there is still a lot of variation depending upon which state you happen to live."