When NY State adopted same sex marriage in 2011, the estate tax was also removed for legally wed couples. But now, The NY State Supreme court has gone one step further and ruled to refund estate taxes collected from any gay couple going as far back as tax year 2008:
Gov. Cuomo called the move “one more step toward justice” for people like 84-year-old Edie Windsor, whose legal battle over a $363,000 federal estate tax bill was the basis for the landmark decision. “I am of course thrilled that I will be getting a refund of the estate tax that I never should have had to pay in the first place,” Windsor said. “What makes me even happier, however, is the fact that no other gay person will ever again have to face the indignity of DOMA.”
While this is great for NY State residents, the Federal Government has no such law in effect yet. Therefore, even if gay couples are legally married in a state that recognizes Same-Sex couples, they are still subject to a much higher estate tax bill from the IRS.
If you’d like more information, contact NY State’s Taxpayer Information hotline at 518-457-5387, or to file an amended NY State tax return to request an estate tax refund, contact an R&G Brenner professional here.
Source: NY Mag