Same-sex married couples in New York State have been awaiting guidelines from the NYS Departmetn of Taxation. This update finally came.  On July 29, 2011, the New York State Department of Taxation and Finance issued a Technical Memorandum discussing the effect of New York's Marriage Equality Act on New York State income and estate taxes.

For New York State income tax purposes, same-sex couples who are married must now file their New York State income tax returns using a "married" status, "married filing jointly" or "married filing separately."  (This is in contrast to Federal income taxes, where each member of a same-sex couple must use the "single" filing status.)  To prepare a New York State income tax return, same-sex couples must prepare, but not file, a Federal income tax return as if they are "married" for Federal income tax purposes, and use those calculations on the New York State income tax return.

For New York State estate tax purposes, same-sex spouses now enjoy the benefits that heterosexual couples have: a surviving spouse can inherit tax-free, and a surviving spouse may make the same elections, and take the same deductions, that heterosexual couples are permitted.  Under current Federal law, same-sex spouses are not recognized for Federal estate tax purposes, and therefore do not inherit tax-free, and are not entitled to deductions, elections, and credits that heterosexual couples currently enjoy.

Read the Official Memorandum 

As always, if you have any questions or would like to discuss your particular situation, please contact Joseph G. Milizio, Esq. at 516-437-4385 or via email at jmilizio@vmmlegal.com.