Iowa Tax Treatment of Same-Sex Marriages

Per Iowa Tax Treatment of Same-Sex Marriages:

Return Filing Options for Same-sex Spouses

For federal purposes, spouses in a same-sex marriage should file either as single filers, or as head of household. For Iowa purposes, same-sex spouses have three options for filing their Iowa income taxes:

• A married filing jointly Iowa return;
• A married filing separately Iowa return; or
• A married filing separately on a combined Iowa return.

Same-sex spouses who file their federal taxes as head of household will generally not be eligible to file their Iowa taxes as head of household. Iowa’s use of the term “head of household” is based upon the federal definition, which generally allows the status only for unmarried people. Since same-sex spouses are married under Iowa law, with few exceptions, they are no longer able to file as head of household on their Iowa taxes.

Entering Into TaxACT

All information entered on the federal return flows to the attached state return. If taxpayers file with one filing status on the federal form (i.e. both file as single), and need to change to a different filing status on the state form (i.e. married filing joint), it is not possible to have this "conflict" in filing statuses between the federal and state forms in one return.

Same-sex married couples using TaxACT should prepare multiple returns in order to keep federal and state information intact in case adjustments are necessary in the future. An example of how same-sex couples can file as single taxpayers for federal purposes, but jointly for state purposes, is as follows:

TaxACT Return #1 – Spouse A files a federal return with filing status Single

TaxACT Return #2 – Spouse B files a federal return with filing status Single

TaxACT Return #3 – Spouse A and Spouse B combine federal information from Return #1 and Return #2 in a new return (do not file this federal return). The combined federal information then flows to the state return within TaxACT so that Spouse A and Spouse B can complete their state return (file this state return).

The combined federal form (in TaxACT Return #3) should equal the two federal forms that were filed for both taxpayers separately. A copy of all three federal forms should be maintained for documentation.