This past Wednesday, The House unanimously passed a bill to update the tax code so that it provides equal treatment for same-sex married couples. The passing of this bill, also known as the PRIDE Act, allows same-sex couples who got married before the Defense of Marriage Act was struck down in 2013 by the Supreme Court to claim their tax refunds.
The PRIDE (Promoting Respect for Individuals’ Dignity and Equality) Act of 2019 was introduced by Rep. Judy Chu (D-Calif.) and Andy Levin (D-Mich). It removes language such as “husband” and “wife” from the tax code in order to accommodate same-sex couples. Taxpayers will instead able use terms such as “spouse” and “married couple” when filing taxes.
What the House passing the PRIDE Act Means for Same-Sex Married Couples
With the update to the tax code, same-sex couples married before the striking down of the Defense of Marriage Act (DOMA) are able to claim tax refunds that they are entitled to. For many years, same-sex couples were denied tax refunds because DOMA did not allow jointly filing of federal taxes.
Though the Supreme Court’s decision in U.S. v. Windsor overturned DOMA, this did not fix limitations within the tax code. The IRS still did not have statutory authority to override tax code limitations of three years, which restricted the ability for married couples to file jointly after having filed separate returns.
With the passing of the PRIDE Act, the IRS will now be permitted to issue refunds to same-sex married couples who married prior to DOMA being struck down.
Corrections to Injustices
In a statement, Chu said, “This bill corrects injustices in our laws that failed to recognize the reality of legal same-sex marriage in our country…For starters, it removes gendered language like ‘husband and wife’ and replaces it with neutral wording like ‘they’ and ‘married couple’. It also allows same-sex couples who married in states before the repeal of the Defense of Marriage Act to go back and refile past taxes as a married couple, something they have been prevented from doing even after the repeal of DOMA by an IRS restriction that only allows married couples who filed separately to refile returns going back three years. Legalizing same-sex marriage has meant greater equality for families across our country. It’s time our tax code reflect that. I’m thrilled to have the support of my colleague Andy Levin and I hope the Senate will act on this legislation soon.”
Chu also mentioned that the change on amending tax-filing status is expected to give back families more than $50 million.
In addition to the PRIDE Act, Senator Elizabeth Warren (D-Mass.) has also introduced legislation that would allow same-sex married couples to refile their tax returns as a married couple if married prior to the overturning of DOMA.
Questions About How this Affects You?
If you have any questions regarding the passing of this act or how it may affect you and your family legally, please contact us.
