This week, in a 5-4 decision, the Supreme Court of the United States has affirmed the judgment of the Second Circuit Court of Appeals that Section 3 of the Defense of Marriage Act (DOMA) is unconstitutional.

What could this decision mean from a tax perspective?  

1. By finding Section 3 of DOMA unconstitutional, legally married same-sex couples will be entitled to over 1,100 federal benefits and protections.
2. Legally married same-sex couples will be allowed to file joint federal income tax returns and enjoy the benefits of unlimited gifting, the estate tax marital deduction, and portability of the unused estate and gift tax applicable exclusion amount.

In addition to the tax benefits, married same-sex couples will be able to inherit Social Security benefits, sponsor their spouses for visas, and legally take time off of work under the Family and Medical Leave Act, among other benefits.

Gray, Gray & Gray will continue to monitor this decision and provide additional updates on the tax implications as the scope of this decision plays out.  Among the issues this decision could significantly affect are retroactivity and potential tax refund opportunities.

For more information about tax implications of the DOMA decision, please contact the Gray, Gray & Gray Tax Department at (781) 407-0300.