STATEMENT: H&R Block Responds to Supreme Court DOMA Ruling
Statement from Kathy Pickering, Vice President, H&R Block Government Relations and Executive Director, The Tax Institute at H&R Block
“The Supreme Court decision today will have enormous ramifications for how same-sex married couples file taxes for 2013 and each year going forward. Currently, 12 states and the District of Columbia allow, or are scheduled to allow, same-sex marriage. Today’s ruling now makes it possible for these thousands of couples to be recognized as married for federal income tax purposes.
Benefits include the ability to file a joint federal income tax return. For example, a couple filing a joint tax return where one spouse has taxable income of $70,000 and the other spouse has taxable income of $30,000 would see a $1,625 tax savings over filing two individual tax returns. However, some couples may see their combined tax liability increase.
Couples should check with their tax advisor to verify eligibility for tax benefits such as child related tax credits and deductible IRA contributions. As retirement planning and employer-provided benefits such as health insurance are made available to same-sex couples, they should consult their advisor to maximize their future tax savings.
Over the next six months, prior to the opening of the next tax season, it will be important for those couples affected by this decision to evaluate their potential income tax liability for 2013 and adjust their federal income tax withholding and estimated tax payments. These taxpayers also may benefit from filing amended returns.
As the world’s largest tax services provider, we are in a unique position to help consumers and tax professionals better understand the change that will accompany this decision. H&R Block is working closely with the IRS, its tax professionals and customers to help manage the transition.”