The Internal Revenue Service along with the U.S. Treasury Department announced on Thursday that they will recognize all legally married same-sex couples, even couples living in states that won't recognize the marriage, for federal tax benefits, according to the New York Times.
The change in policy came about because of the Supreme Court decision this past June that struck down the Defense of Marriage act. Prior to the announcement it was unclear how a couple who had been married legally in a state that recognizes same-sex marriage but had relocated to one that does not would file their taxes. Now, as long as the marriage was legal, same-sex couples will file either "married filing jointly" or "married filing separately" in 2013 and beyond, according to the New York Times.
"Today's ruling provides certainty and clear, coherent tax-filing guidance for all legally married same-sex couples nationwide," a statement by Treasury Secretary Jacob Lew said. "This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change."
Couples who have been married for a number of years will also have the opportunity to file amended returns for previous years. Same-sex couples will also be allowed to file for refunds from recent past tax years, according to Forbes.
In what is probably the most anticipated benefit of the new ruling same-sex couples will now be allowed to transfer an unlimited amount to their spouse without having to pay a gift tax, or in the event of death, an estate tax, as long as the recipient is a U.S. citizen, according to Forbes.
The ruling was being celebrated by advocates of same-sex marriage.
"This announcement makes today a celebration and relief for married same-sex couples all over America," Evan Wolfson, found of Freedom to Marry said in a statement. "At long last, the IRS will treat them as what they are: married."
