North Carolina Same Sex Filing-

[jlewis]

First time I've seen this on NCDOR site even though it is dated 10/18/13-

North Carolina Department of Revenue

Tax Administration October 18, 2013 PD-13-1

DIRECTIVE

Subject:

Same-Sex Marriage and Filing Status

Tax:

Individual Income Tax and Withholding Tax

Law:

Article 4 Part 2 and Article 4A

Issued By

: Income Tax Division, Personal Taxes Section

Date:

October 18, 2013

Number:

PD-13-1

This directive addresses the impact for purposes of North Carolina individual income and withholding taxes of Revenue Ruling 2013-17 by the Internal Revenue Service.

Under Rev. Rul. 2013-17, the IRS now allows same-sex spouses to file their federal income tax returns using the filing status of married filing jointly or married filing separately. Because North Carolina does not recognize same-sex marriage as valid (N.C.Gen.Stat. § 51-1.2), the North Carolina Department of Revenue cannot follow the new definitions in Rev.Rul. 2013-17. Consequently, individuals who enter into a same-sex marriage in another state cannot file a North Carolina income tax return using the filing status of married filing jointly or married filing separately.

Each such individual will need to file a separate North Carolina income tax return on Form D-400 using the filing status of single or, if qualified, head of household or qualifying widow(er). Such individuals who file a federal income tax return as married filing jointly or married filing separately must each complete a separate pro forma federal return for North Carolina purposes with the filing status of single or, if qualified, head of household or qualifying widow(er) to determine each individual’s proper adjusted gross income, deductions and tax credits allowed under the Code for the filing status used for North Carolina purposes, and then attach a copy of the pro forma federal return to the North Carolina return.

When these taxpayers file electronically, each individual taxpayer will select to file the "State only" return for North Carolina purposes. The process will prompt the taxpayer at that point to complete another federal return with the North Carolina filing status of single or, if qualified, head of household or qualifying widow(er), and this pro forma federal return should be transmitted with the State return when the taxpayer files the "State only" return with North Carolina.

[Guest Taxed]

NC is determined to make sure that same sex couples pay double for their tax prep fees. They are forcing you to prepare not only the state return but also the Federal return as (Single or HH) and submit that to the state.

[Mr. Pencil]

Because North Carolina does not recognize same-sex marriage as valid (N.C.Gen.Stat. § 51-1.2), the North Carolina Department of Revenue cannot follow the new definitions in Rev.Rul. 2013-17.

I believe this is unconstitutional, I look forward to the conservative arguments about states' rights, because the Constitution says "Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State."

[jlewis]

Since this procedure may be necessary in quite a few states, maybe ATX can streamline the process. How about it, beta testers?

[Guest Taxed]

Given the lateness of these regulations I think most software companies will not try to do any special coding customized for each state. I think you will be forced to do 2 sets of returns to satisfy NC.

Before the law change for my same sex couples who were married, I was doing the MA return MFJ and the Federal single or HH. But unlike NC, MA did not demand a copy of the Fed return.

[MAMalody]

I believe this is unconstitutional, I look forward to the conservative arguments about states' rights, because the Constitution says "Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State."

Like Taxed always says, "let them take them to court."

[joanmcq]

We've had to do this in CA since 2007, when we did two federal returns & one state. The difference between MA & CA and now NC & a lot of states in the reverse is that MA doesn't start with federal AGI or taxable income, which both CA & NC do. Hence the need for the proforma federal.