Changes to North Carolina Tax Law for Same-Sex Married Couples

Effective October 24, 2014, the State of North Carolina now recognizes the marriages of same-sex couples legally performed inside and outside of North Carolina.  This change comes about a year after the landmark United States Supreme Court ruling that overturned the Defense of Marriage Act (DOMA) which set the ground for making same-sex marriages identical to heterosexual marriages for tax purposes.North Carolina Same Sex

How to File Tax Returns in North Carolina for Same-Sex Marriages

As a result of these changes, same-sex married couples no longer have to prepare up to 7 different tax returns as required by the old law.  In fact, effective with the 2014 tax returns, same-sex married couples are now required to use the same filing status as used on the federal return – Married Filing Jointly or Married Filing Separately.  There are no specials laws or additional procedures that differ between same-sex couples and heterosexual couples effective with the new law.

How to Fill Out Form NC-4 or Form NC-4 EZ for Same-Sex Couples

It is recommended that all same-sex married couples provide their employers with a new Employee’s Withholding Allowance Certificate, Form NC-4 or Form NC-4 EZ completed as a married individual.  Changing the allowances will affect the amount of taxes withheld from an employee’s paycheck.

North Carolina Refund Opportunities for Prior Years

The repeal of DOMA also allows same-sex married couples the opportunity to amend returns for the past three years to claim refunds of federal income, Social Security, and Medicare taxes.  In a similar fashion, North Carolina allows same-sex couples who were married before October 24, 2014 the opportunity to claim a refund for the past 3 past years.  Amending prior year returns are not a requirement but simply an option for those interested.

Many same-sex married couples will be able to file amended returns to claim refunds; however, it is not always a benefit for tax purposes to file the amended returns.  The rules are rather complex in making this determination.  As such, Simply Taxes is offering a FREE analysis to determine the likelihood of receiving additional refund money.  Simply fill out this easy questionnaire to have a trained tax specialist contact you regarding your options.

Sources/Related Articles:

NC-4 EZ or NC-4: Changes To The North Carolina Employee’s Withholding Certificate Form

4 Steps to Prepare Same-Sex Tax Returns in North Carolina (Pre- 10/24/14 rules)

Same-Sex Marriage and Filing Status (NCDOR Directive PD-14-3)

Simply Taxes, LLC is a year-round tax preparation firm with an office located in North Raleigh. Our Raleigh accountants are ready to work one-on-one with you to help optimize your tax deductions and to resolve any other tax issues in a professional manner.

The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.

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