Minnesota Tax Guidance for Same-Sex Couples

We recently posted about upcoming guidance from the Minnesota Department of Revenue concerning state-tax treatment of same-sex spouses. That guidance was posted today on the Department of Revenue website.

As we predicted in our prior post, the scope of guidance on the state level was limited due to the lack of guidance provided by the IRS to date. The Department of Revenue stated that it would not be able to comment on how Minnesota state income tax or withholding would be affected until more information is provided by the IRS.  For withholding purposes, employers are advised to continue using the filing status provided by employees.  Minnesota law allowing same-sex marriage goes into effect on August 1st. The Department noted as of that date, Minnesota employers should accept the “married” filing status for same-sex married couples who update their filing status. As a practical matter, this means that, although employers could, they do not have to take action until employees update their filing status.

We will keep you posted regarding clarifications on the federal and state impact of the recent Supreme Court decisions.

Today’s post was contributed by Atul Jain and Megan E. Hladilek

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