More and more states have been issuing guidance regarding how such states will treat same-sex marriages for state tax purposes in light of the Internal Revenue Service’s (IRS) determination in Revenue Ruling 2013-17 that for federal tax purposes, the IRS will recognize a marriage of same-sex individuals that was validly entered-into in a state whose laws authorize same-sex marriage, even if the married couple is domiciled in a state that does not recognize the validity of such same-sex marriage.
Kansas joins the group of states that will not recognize same-sex marriage for purposes of determining filing status on Kansas income tax returns, according to guidance published by the Kansas Department of Revenue (the “Department”) on October 4, 2013 in Notice 13-18.
The Department explained that the Kansas Constitution only recognizes marriages between one man and one woman. Consequently, same-sex married couples cannot file a Kansas income tax return using a married filing status.
The Department stated that same-sex individuals who are considered married for federal income tax purposes will need to file a separate Kansas income tax return using the filing status of single or head of household, as applicable. Same-sex married couples who file a joint federal income tax return must complete a worksheet provided by the Department to show the amount of income reported on the joint federal income tax return that should be allocated to each individual in order to determine the amount of federal adjusted gross income to use on the Kansas income tax return.
This guidance applies to tax returns filed for the tax year 2013 and going forward.
The guidance also clarified that even though Revenue Ruling 2013-17 provides that under certain circumstances same-sex married couples may amend their federal income tax returns to claim a married filing status, no such amended returns may be filed in Kansas to change such couples’ filing status to a married filing status.
The Multistate Tax Update will continue to follow developments in state tax law in the wake of Revenue Ruling 2013-17 and the U.S. Supreme Court’s ruling in United States v. Windsor (which struck down Section 3 of the Defense of Marriage Act (DOMA) on grounds that the federal interpretation of "marriage" and "spouse" to apply only to heterosexual unions is unconstitutional under the Due Process Clause of the Fifth Amendment). Such rulings have only begun their ripple effect throughout the United States at both the federal and state level. To be sure, a multitude of state legislation, rulings, guidance, and litigation will ensue as a result. If you have questions on how these rulings or other developments may affect you or your business, please contact us.
Click here to read the text of Notice 13-18.