19 Sep Supreme Court Ruling – Same Sex Marriage
Supreme Court Ruling – Same Sex Marriage
Defense Of Marriage Act (DOMA) Supreme Court Decision
On June 26, 2013, the U.S. Supreme Court ruled a section of the Defense of Marriage Act (DOMA) as unconstitutional. The ruling maintains that, effective immediately, same-sex couples who were legally wed in states that allow same-sex marriages should now be treated as legal spouses under the US Tax Code. There is also a chance it may apply retroactively when further clarification on the ruling is released. One caveat was that if a couple was married in a state that allows same sex marriage, but lives in a state that does not recognize same-sex marriage, the DOMA changes would not apply to them. Now, same-sex spouses are considered lawfully married under the Internal Revenue Code as long as the marriage is valid in the state where it was entered into – even if they reside in a state that does not recognize the validity of same-sex marriages.
Health FSA (FSA) and Health Reimbursement Arrangement (HRA)
FSAs and HRAs may need to be extended to same-sex ‘legal’ spouse. The spouse’s expenses would now be eligible for reimbursement under an FSA and/or HRA. In addition, the legal marriage or divorce of a same-sex couple would now be considered a qualifying event permitting elections to be changed.
Dependent Care FSA (DCA)
The Dependent Care married income limit will now apply to legal same-sex couples.
Health Savings Account (HSA)
The annual HSA family contribution limit applies to legal same-sex couples.
COBRA
Same-sex spouses and their children will now be COBRA-qualified beneficiaries and may elect benefits upon an eligible COBRA qualifying event.
Group Health Insurance
Employees with a same-sex spouse will no longer be required to pay income taxes on the cost of the spouse’s health coverage. Awaiting further guidance.
States that allow same-sex marriage as of July 1, 2013 are: California, Connecticut, Delaware, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, Washington, as well as District of Columbia.
We will provide more information as it becomes available.