« Ind. Courts - Camm trial continues in Lebanon | Main | Catch-up: What did you miss over the weekend from the ILB? »

Sunday, October 13, 2013

Ind. Gov't. - "State faces same-sex tax filing decision"

In the Sunday Indianapolis Star, John Ketzenberger's business column explores how the Indiana Dept. of Revenue (and perhaps ultimately the General Assembly) will handle the state tax issues created by the SCOTUS decision in Windsor. Some quotes:

Legally married same-sex couples who live in Indiana can file a joint federal tax return next year thanks to a recent ruling by the Internal Revenue Service, which could provide significant tax benefits.

But what will those same couples do when it comes time to file their state returns?

Indiana won’t allow joint filing of state income tax returns, of course. State law currently bans same-sex marriage and voters may be asked next year whether to place a ban in the state constitution.

The state’s solution to the problem will be revealing because Indiana can make it simple for married, federal joint-filing same-sex couples, or it can make it much more difficult.

We’ll know which it is in a few weeks, when the Indiana Department of Revenue plans to announce its policy on filing state returns, according to spokesman Robert Dittmer.

The IRS set matters in motion in late August, when it decided to allow joint returns, and the attendant benefits, from same-sex couples legally married regardless of where they actually live.

The new policy created a problem in Indiana and 23 other states that ban same-sex marriage yet use federal tax returns as the basis for state filings. Since they’ll still have to file individual returns in Indiana, how do same-sex couples who file a joint federal return determine their income for the state returns?

The column then discusses the options.

The ILB has had a number of posts on this issue, including:

The Indiana Law Blog: Law - "Same-sex couples will get federal tax ...
Aug 29, 2013 - The Treasury Department and IRS announced on Thursday that legally married same-sex couples will receive the same tax treatment and benefits as ...

The Indiana Law Blog: Law - "Gay and Married Couples in New ...
Aug 31, 2013 - Gay couples can now plan for how their financial lives will change when it comes to federal taxes, even though big questions remain about benefits like Social ...

The Indiana Law Blog: Ind. Gov't. - "Gay Marriage and State Taxes ...
Sep 13, 2013 - "Gay Marriage and State Taxes: States that don't recognize same-sex marriage will face a few tax complications come 2014". Penelope Lemov, correspondent ...

The Indiana Law Blog: Law - More on "Same-sex couples will get ...
Aug 30, 2013 - Law - More on "Same-sex couples will get federal tax recognition". Good points in this Advance Indiana post on the Indiana implications of today's IRS ruling, ...

The Indiana Law Blog: Indiana Law - Indiana newspapers speak out ...
Aug 25, 2013 - As we have said, statutory law already bans same sex marriage in Indiana, so to us, the proposed constitutional ban constitutes piling on by opponents of gay ...

Posted by Marcia Oddi on October 13, 2013 03:25 PM
Posted to Indiana Government