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U.S. gov’t to recognize same-sex marriages for tax purposes

Even legally wed couples in non-marriage equality states will be eligible for tax benefits

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Jeff Zarillo, Paul Katami, Sandy Stier, Kris Perry, David Boies, Chad Griffin, gay marriage, same-sex marriage, marriage equality, Proposition 8, Defense of Marriage Act, DOMA, Prop 8, California, Supreme Court, gay news, Washington Blade
Jeff Zarillo, Paul Katami, Sandy Stier, Kris Perry, David Boies, Chad Griffin, gay marriage, same-sex marriage, marriage equality, Proposition 8, Defense of Marriage Act, DOMA, Prop 8, California, Supreme Court, gay news, Washington Blade

The U.S. government will treat married same-sex couples as equal in the aftermath of the court ruling against DOMA (Washington Blade photo by Michael Key).

The legal same-sex marriages of gay couples — whether or not they reside in a state that observes their union — will now be recognized for tax purposes in the wake of the Supreme Court decision against the Defense of Marriage Act.

Treasury Secretary Jacob Lew announced the change on Thursday in a joint statement with the Internal Revenue Service.

“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide,” Lew said. “It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve. This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.”

The decision, which brings the Obama administration into compliance with the ruling against DOMA, means gay married couples will be able to file federal taxes jointly each year. The announcement also means married gay couples be treated the same as opposite-sex married couples for income and gift and estate taxes.

These couples, according to the joint statement, will now be treated equally in terms of claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA and claiming the earned income tax credit or child tax credit.

LGBT advocates applauded the Obama administration for instituting the change, which they said would help bring relief to married gay couples throughout the country.

Evan Wolfson, president of Freedom to Marry, said the announcement makes today “a day of celebration and relief for married same-sex couples all over America.”

“At long last, the IRS will treat them as what they are: married,” Wolfson said. “Freedom to Marry commends the administration’s swift implementation of the Supreme Court’s landmark ruling for federal equality in an area that will have a direct, tangible impact on families’ financial health.”

Chad Griffin, president of the Human Rights Campaign, also praised the Obama administration for implementing the change.

“With today’s ruling, committed and loving gay and lesbian married couples will now be treated equally under our nation’s federal tax laws, regardless of what state they call home,” Griffin said.  “These families finally have access to crucial tax benefits and protections previously denied to them under the discriminatory Defense of Marriage Act.”

The issue of unequal federal taxation for gay married couples was the reason why the Supreme Court struck down Section 3 of DOMA. Plaintiff Edith Windsor, a New York lesbian, sued the U.S. government because she had to pay $363,000 in estate taxes upon the death of her spouse, Thea Spyer.

According to the statement, the federal government will now recognize for tax purposes any legal same-sex marriage — even if the couples resides in a state that doesn’t observe the union. However, the new policy doesn’t apply to domestic partnership or civil unions.

Troy Stevenson, executive director of the New Jersey-based Garden State Equality, said the decisions demonstrates why his state needs to enact marriage equality. New Jersey offers civil unions, but not same-sex marriage.

“While this is great news for couples who have been married in the 13 states that recognize full marriage equality; let us be clear, New Jerseyans should not be required to cross state lines to be afforded the dignity of marriage,” Stevenson said. “This decision by the IRS makes it crystal clear that civil unions are not now, and never will be equal to marriage.”

Additionally, gay couples may file an amended return if they feel they would’ve receive a refund in one or more prior tax years still open under the statute of limitations. That means these couples generally can file a refund claim for up to three years in the past: 2010, 2011, and 2012. Under some circumstances, such as signing an agreement with the IRS to keep the statute of limitations open, they may be able to seek a refund from an earlier time.

Further, gay employees who receive same-sex spouse health insurance coverage from their employers on an after-tax basis may treat the amounts paid for that coverage as pre-tax and excludable from income.

Pending legislation in the Senate that would have eliminated the federal tax on employer-provided health insurance for same-sex couples is known as the Tax Parity for Health Plan Beneficiaries Act.

Sen. Charles Schumer (D-N.Y.), the sponsor of the bill, said in a statement to the Washington Blade he welcomes the new policy from the administration, but still seeks passage of his bill cover individuals in civil unions or domestic partnerships.

“Today’s ruling is an important part of implementing the Supreme Court’s historic decision to overturn DOMA,” Schumer said. “I still strongly believe that couples in civil unions and domestic partnerships should receive the same tax treatment as all married couples and will continue to push for exactly that.”

Senior Treasury officials lay out new policy

In a conference call with reporters, senior Treasury officials, speaking on condition of anonymity, laid out the reasoning by which the administration determined that married gay couples living in non-marriage equality states would be recognized for federal tax purposes.

“We have a federal tax code that applies to all 50 states,” officials said. “The thought process was that from tax administration standpoint, it made sense to have rules to apply across the entire nation. So, same-sex couples that are married under federal law in one state should get similar treatment regardless of where they live. On the flip side, from the administration’s standpoint, it would be very difficult to administer a situation it was dependent on where a taxpayer lived on what the state was in that time.”

Officials said the reasoning was analogous to the administration’s previous determination that common law marriages, or some kind of irregular marriage, would be recognized as a union for federal tax purposes.

It’s possible that under some circumstances, married gay couples will have to pay more in taxes than they were paying with DOMA in place. Officials didn’t have an exact number for how many gay couples would pay more in taxes, but expected it would be proportionate to the number of straight couples.

While gay couples may file an amended tax return for up to three years in the past, officials said there’s no obligation to do so — even if they should have had to pay more in taxes under the new policy.

“It’s basically the taxpayers option to that, to go back and file an amended return,” officials said. “There are instances in which a taxpayer would find it advantageous to file an amended return claiming a joint filing status for a previous tax year, but it’s not a requirement.”

In the event that an employer offers domestic partner health benefits to gay employees, but doesn’t recognize same-sex marriage, officials said federal tax immunity would also apply to these benefits. That would be a situation to similar to Walmart, which is set next year to offer domestic partner health benefits to gay employees in same-sex relationships, but won’t recognize same-sex marriages.

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Congress

PFLAG honors Maxine Waters

Barney Frank presented Calif. Democrat with award at DC event

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U.S. Rep. Maxine Waters (D-Calif.) (Photo by Paul Morigi/Getty Images for PFLAG National)

PFLAG honored U.S. Rep. Maxine Waters (D-Calif.) with the “2025 PFLAG National Champion of Justice” award during their annual “Love Takes Justice” event in Washington.

Waters has represented California’s 43rd Congressional District — including much of Los Angeles — since 1991 and has been a vocal advocate for LGBTQ rights since her swearing-in.

Her track record includes opposing the Defense of Marriage Act, which would have made marriage only between a man and a woman; co-sponsoring the Respect for Marriage Act, ultimately requiring all U.S. states to recognize same-sex marriages performed by other states; and is a long time supporter of the Equality Act, which would codify comprehensive protections for LGBTQ Americans.

In addition to her work on marriage equality, she also created the Minority AIDS Initiative to help address the devastating impact of HIV/AIDS on minority communities, particularly communities of color.

The award reception took place Tuesday at the headquarters of the American Federation of Teachers, where Waters was presented with the award by former U.S. Rep. Barney Frank (D-Mass.), the openly gay member of Congress. Frank praised Waters for her unwavering support for the LGBTQ community and her lifelong commitment to advancing equality for all.

“One of the most encouraging developments in the fight for human rights is the failure of those who traffic in any form of bigotry, including bigotry to divide the Black and LGBTQ+ communities,” said Frank, who came out in 1987 while in office. “No one deserves more recognition for strengthening our unity than Maxine Waters.”

During the reception, Waters spoke about her extensive history of LGBTQ advocacy within the halls of Congress, emphasizing that her idea of government centers around uplifting its most vulnerable and threatened communities.

“From the very beginning of my public life I’ve believed that the government must protect those that are vulnerable, including LGBTQ+ people, who have been pushed to the margins, criminalized and told that their lives and their love do not matter,” Waters said. “Discrimination has no place in our laws.”

She continued, adding that the discrimination LGBTQ people have dealt with — and continue to deal with — is unconstitutional and wrong.

“I am proud to stand with LGBTQ+ families against efforts to write discrimination into our constitution, against attempts to deny people jobs, housing, healthcare and basic dignity because of who they are or who they love,” she said.

Waters joins a slew of other LGBTQ advocates who have received this award, beginning with the late-Georgia Congressman John Lewis in 2018. Past honorees include Oakland (Calif.) Mayor Barbara Lee, who was then a member of Congress, U.S. Sen. Tammy Baldwin (D-Wis.), Frank, Colorado Gov. Jared Polis, who was then a member of Congress, and Speaker Emerita Nancy Pelosi (D-Calif.).

PFLAG CEO Brian Bond commented on the continued fight for LGBTQ rights in the U.S. as anti-transgender rhetoric and policies coming from the Trump-Vance White House grow each week.

“LGBTQ+ people and their families — and all of you here — know too well the reality of the political climate, the attitudes of the public, and the sheer lack of respect that LGBTQ+ people are experiencing in the world today. There’s no end to the hostile barrage of harmful laws, city ordinances, and regulations, especially against our trans loved ones,” Bond said. “This particular moment in history calls us to increase and fortify our work, advocating at every level of government.”

He ended with some hope — reminding the LGBTQ community they have been on the receiving end of discrimination and unjust treatment before, but have risen above and changed the laws — saying we can do it again.

“PFLAG members and supporters are uniquely suited for this moment, because we are fighting for and alongside our LGBTQ+ loved ones, we know that our love is louder … and love and liberty are inseparable,” said Bond.

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Congress

Global Respect Act reintroduced in US House

Measure would sanction foreign officials responsible for anti-LGBTQ human rights abuses

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U.S. Rep. Sarah McBride (D-Del.) is a sponsor of the Global Respect Act. (Washington Blade photo by Michael K. Lavers)

U.S. Reps. Sarah McBride (D-Del.) and Brian Fitzpatrick (R-Pa.) on Thursday reintroduced a bill that would sanction foreign officials who carry out anti-LGBTQ human rights abuses.

A press release notes the Global Respect Act would direct “the U.S. government to identify and sanction foreign persons who are responsible for torture, arbitrary detention, physical attacks, murder, and other flagrant abuses against LGBTQI+ individuals.” The measure would also require “annual human rights reporting from the State Department and strengthens coordination with foreign governments, civil society, and the private sector to prevent anti-LGBTQI+ persecution.”

“Freedom and dignity should never depend on your zip code or who holds power in your country,” said McBride.

The Delaware Democrat who is the first openly transgender person elected to Congress notes consensual same-sex sexual relations remain criminalized in more than 60 countries, while “far too many (countries) look away from the violence that follows.”

“The Global Respect Act reaffirms a simple truth: no one should be targeted for who they are or whom they love,” said McBride. “This bill strengthens America’s voice on human rights.”

“No person should ever face imprisonment, violence, or discrimination on the basis of who they are,” added Fitzpatrick. “The Global Respect Act imposes real and necessary sanctions on those who carry out these abuses and strengthens America’s resolve to uphold basic human rights worldwide.”

The Global Respect Act has 119 co-sponsors. McBride and Fitzpatrick reintroduced it in the U.S. House of Representatives on the annual Transgender Day of Remembrance.

“As we mark Transgender Day of Remembrance, we reaffirm that no one, no matter where they live in the world, should be persecuted or subjected to violence simply because of who they are or whom they love,” said Mark Bromley, co-chair of the Council for Global Equality. “The Global Respect Act seeks to hold the world’s worst perpetrators of violence against LGBTQI+ people accountable by leveraging our sanctions regimes to uphold the human rights of all people.”

Outright International, Amnesty International USA, Robert F. Kennedy Human Rights, ORAM (Organization for Refuge, Asylum and Migration), and the Human Rights Campaign are among the other groups that have endorsed the bill.

U.S. Sens. Jeanne Shaheen (D-N.H.) and Lisa Murkowski (R-Alaska) in June introduced the Global Equality Act in the U.S. Senate. Gay California Congressman Robert Garcia and U.S. Sen. Edward Markey (D-Mass.) on Monday introduced the International Human Defense Act that would require the State Department to promote LGBTQ and intersex rights abroad.

The promotion of LGBTQ and intersex rights was a cornerstone of the Biden-Harris administration’s overall foreign policy.

The global LGBTQ and intersex rights movement since the Trump-Vance administration froze nearly all U.S. foreign aid has lost more than an estimated $50 million in funding.

The U.S. Agency for International Development, which funded dozens of advocacy groups around the world, officially shut down on July 1. Secretary of State Marco Rubio earlier this year said the State Department would administer the remaining 17 percent of USAID contracts that had not been cancelled.

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Rep. Grijalva reiterates LGBTQ support at swearing in

‘That’s what the American people expect us to do — fight for them’

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Rep. Adelita Grijalva was sworn in last week. (Photo courtesy of Adelita Grijalva for Congress)

Adelita Grijalva, Arizona’s new 7th District representative, was sworn into Congress last week, vowing to hold the Trump–Vance administration accountable and to protect LGBTQ rights.

Grijalva becomes the first Latina ever to represent the state of Arizona.

Her swearing in was delayed by a record 50 days because she vowed to be the deciding House vote in favor of a discharge petition to release the Epstein files, although House Speaker Mike Johnson blamed the delay on the federal government shutdown.

She began her speech by honoring her late father, Raúl Grijalva, who represented the same district until his death earlier this year.

“I rise today, the proud granddaughter of a bracero – a hard-working Mexican immigrant who came to this country with hope for a better life,” said Rep. Grijalva. “And I stand as the proud daughter of a U.S. congressman – a man who spent his entire life fighting for justice, equity, and dignity for the most vulnerable. From working as a vaquero, to serving in Congress in just a single generation – that is the promise of this country.”

During her swearing-in remarks, she referenced the slew of issues surrounding her election — most notably the release of the Epstein files, her support for immigrants, and her support of the LGBTQ community, especially trans people, as rhetoric from the Trump–Vance administration has increasingly vilified them.

“What is most concerning is not what this administration has done, but what the majority in this body has failed to do: hold Trump accountable as the co-equal branch of government that we are.”

“We need to fight for our immigrant communities and veterans. We need to stand up for our public schools, children, and educators. We need to respect tribal sovereignty and our environment. We need to stand up for LGBTQ+ rights. Because that’s what the American people expect us to do — fight for them. That is why I will sign the discharge petition right now to release the Epstein files, because justice cannot wait another day. Adelante mi gente. Muchas Gracias!”

This sentiment echoes what she told the Blade in an exclusive interview earlier this month, in which she emphasized that speaking up for the most marginalized is part of her duty as a representative.

“Trans rights are human rights. That’s it,” she said firmly. “When I say I’ll speak up for those who don’t feel they have a voice, I mean everybody — especially people who’ve been pushed to the margins.”

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