Posted by:
Brother Of Jerry
(
)
Date: December 28, 2013 04:27PM
I do income taxes as an AARP volunteer, and we have already gotten 3 opinions from the Utah Tax Commission on how to handle state taxes for same-sex couples.
Initially, same sex marriages were not recognized at all in Utah, regardless of where they were performed.
When the federal decision came down late last summer to allow SSM couples to file jointly for federal income tax if they were legally married, even if they now lived in a state that did not recognize the marriage, Utah was in a bind. The law, and all the software for filing returns, insists, except in certain unusual situations, that a couple that files jointly on their federal return, must file jointly on their state return. Most of the numbers on the state return come directly off the federal return.
The Utah Tax Commission reasonably saw that it would be a total mess to not allow married gay couples in Utah to file jointly if they had a joint federal return, so their initial decision was to allow a joint state return.
Then the AG office got wind of that and reversed the decision. A legally married same sex couple residing in Utha who filed a joint federal return, would also have to prepare but not file two federal returns, filing either as Married Filing Separately, or Single (AG was still trying to decide which of those two to require when the Shelby decision came down). They would then have to file two state tax returns based on the numbers in the unfiled, and otherwise totally superfluous separate federal returns.
The reasoning was that Amendment 3 forbade (I love it when I get to write "forbade" :) any recognition of SSM. We were trying to figure out how the hell we were going to do a state return if a same sex couple came in. The software won't allow you to do multiple federal returns for the same SSN.
Meanwhile, we are bound by federal non-discrimination guidelines. I fact, about 10 days ago, I got a blast email from the IRS that basically said if a same-sex couple comes in to have their taxes done, all the volunteers are bound by their volunteer agreement to do the return in a professional and respectful manner. You can't refuse to do it, and you can't ask to have another volunteer do it. If a volunteer can't agree to that, they will not be able to participate in the program.
We are always kind of desperate for volunteers. There was zero wiggle room in that email. However desperate we are, right will be done by gay couples or else. I was proud of the IRS. Bet that's a sentence you don't see often. That requirement could be a deal breaker for some volunteers.
Anyway, we meet with the Utah tax commission in about 2 weeks, and I am sure there is much pencil chewing as they try to figure out what our instructions will be. I of course and hoping for "treat them as a married couple, period."
If there is no stay of Shelby's decision, I am pretty sure they will have no choice in the matter, but if the SC issues a stay, and they go back to their "gay couples get to do 5 returns, 3 federal and two state" total mess plan, I will be a very unhappy camper.
I will return and report.
Edited 1 time(s). Last edit at 12/28/2013 04:35PM by Brother Of Jerry.