The National LGBT Bar Association, BNY Mellon and White & Case LLP have announced a first of its kind Online LGBT Tax Resource — at LGBTBar.org/tax — to help same-sex couples and their tax advisors navigate state tax laws.
The resource is a tool for both tax preparers and payers, providing a comprehensive, state-by-state list of reporting regulations for LGBT couples.
Tax law remains one of the most complex and nuanced issues impacting the LGBT community, especially in states where couples are not allowed to file married tax returns.
Following the U.S. Supreme Court’s decision invalidating the federal Defense of Marriage Act, married couples are now eligible to file married federal returns. In 33 states, however, those same couples cannot file joint state returns. In response, the Online LGBT Tax Resource was developed to ensure families are equipped with the most up-to-date tax information for their home state.
“The end of the federal Defense of Marriage Act was a giant step forward for couples, but state laws continue to legally discriminate against many families,” said D’Arcy Kemnitz, executive director of the LGBT Bar. “The Online LGBT Tax Resource unveiled today will ensure couples can maximize state tax laws, and the repeal of DOMA, as they navigate what is often a very confusing area for LGBT families. The Resource is designed to ensure they, and their tax preparers and attorneys, have reliable, trustworthy information.”
Among the information provided on the site, are key areas such as:
• A recap of states’ rules concerning same-sex marriage and the impact on state income tax in clear and concise language
• Individual state guidance for married same-sex taxpayers
• Information on litigation, and legislation, that could impact LGBT tax law; and
• Up-to-date information from states’ departments of revenue, and state constitutions.
“In states that don’t recognize same-sex marriage, same-sex couples and their tax preparers are struggling to make sense of how to apply the federal tax guidelines based on the ruling last year that the Defense of Marriage Act was unconstitutional,” said John Lillis, a tax partner with White & Case, who worked on the project pro bono. “This database is an important tool to help tax preparers and same-sex couples navigate the inconsistent rule that applies to state income tax laws.”
“Working collaboratively with the LGBT Bar Association, Pro Bono lawyers from BNY Mellon and White & Case have created an online resource to help same-sex couples reduce the complexity of tax laws. BNY Mellon’s pro bono team reflects our uncompromising commitment to diversity and inclusion as a core business issue,” said Deborah Kaye, managing director and senior managing counsel, BNY Mellon.
The Resource presents the many state-level regulations in easily understandable language. The site, which will be updated quarterly with any new developments impacting tax laws for LGBT couples, provides the only inclusive, accurate listing of filing regulations in all 50 states.