Frazier Deeter CPAs and Advisors

Atlanta

1230 Peachtree Street NE

Suite 1500

Atlanta, GA 30309

main 404.253.7500

Alpharetta

3480 Preston Ridge Road

Suite 375

Alpharetta, GA 30005

main 404.573.4200

Nashville

401 Commerce Street

Suite 920

Nashville, TN 37219

main 615.259.7600

Tampa

2801 W. Busch Boulevard

Tampa, FL 33618

813.874.1280

info@frazierdeeter.com

Breaking Down the 2015 Summer Supreme Court Rulings

08.24.2015 This summer, the Supreme Court made major rulings on same-sex marriage and health insurance subsidies that are sure to spark discussions as the presidential election heats up.

Same-sex Marriage

The first ruling has been long debated and was finally voted on with a 5-4 majority on June 26th. The Supreme Court legalized same-sex marriage in all 50 states, taking away states’ ability to determine the validity of a marriage. 

Prior to the Supreme Court’s decision, Social Security and the Veterans Administration followed state determined marital status, which effectively denied benefits to same sex spouses in most states, as well as state benefits in non-recognition states.

With the new law, same-sex couples now have the same legal and financial rights, protections and responsibilities as other married couples. A few examples include:

  • Same-sex couples will now be able to divorce, regardless of state of residency
  • Same-sex couples must use the same filing status (married filing jointly or married filing separately) for both Federal and required states, instead of filing as jointly for Federal and as single for states that that did not allow for same-sex marriage
  • Same-sex couples can administer an estate as a spouse, inherit property utilizing the unlimited marital deduction and function as surviving spouse in terms of inheritance tax treatment
  • Same-sex couples can now make medical decisions, bring wrongful death suits and apply for Social Security and Veterans benefits as a surviving spouse

This ruling has made navigating tax season and estate planning much less complex for same-sex couples.

Health Insurance Subsidies

The second major Supreme Court ruling came on June 25th. By a 6-3 margin, the Supreme Court determined that premium tax credits under Code Sec. 36B, also known as health insurance subsidies, are not limited solely to taxpayers who live in States that have established their own health insurance exchange, but rather are also available to taxpayers residing in states with a Federal Exchange. The IRS may now issue subsidies to those who purchased healthcare through HealthCare.gov.

In a new FAQ prepared jointly with the IRS and the Department of Health and Human Services, the Employee Benefits Security Administration has also clarified the requirements for the limitations on cost-sharing and for provider nondiscrimination.

With this law in effect, we will continue to see increases in paperwork and expect to see new planning challenges emerge as the Affordable Care Act is phased in.

With new laws put into place due to the recent Supreme Court rulings, it is important to meet with a tax professional to ensure you receive all the tax benefits available to you.  Please consult with a Frazier & Deeter tax advisor to see how recent and future rulings could affect you.

About the Blogger

Terri Lawson is the Partner-in-Charge of the Tax Department. With more than 20 years of experience in preparing and reviewing complex tax returns for individuals, estates and trusts, Terri assists clients in the areas of tax, estate, gift, succession and divorce planning.

 

Syndication

Affiliates

CPA based investment management
Frazier & Deeter, a Top 100 Largest CPA Firm in the United States, has accountants and business advisors who offer a full range of assurance and advisory services in the areas of audit, tax and management consulting and personal tax planning and compliance. As a leading accounting firm, we serve clients across the nation and internationally that include closely-held companies, SEC companies, and nonprofit entities. Headquartered in Atlanta, Georgia, we have been recognized as the 56th largest accounting firm in the nation, as one of the Top 25 Best Managed CPA firms in the country, and one of the Best Accounting Firms to Work for in the U.S.
Secure File Transfer
best firm to work for IPA Top 100 FirmsIPA Best of the Best 2015Top100Accountingfirm
©2016 Frazier & Deeter, LLC. All Rights Reserved.