We're married, it's tax season, and this is Kansas. Now what?

Kansas income tax update from Equality Kansas

We've been getting this question since DOMA fell in June of 2013, and with marriage equality (sort of) here in Kansas, we're now getting it daily. To try to help you with this annual American chore of filing your Federal and State tax returns, we've talked to tax professionals for different options couples have in filing this year.

Before we continue, a disclaimer: We are not offering legal advice or official tax preparation advice! Every person's situation is different. When in doubt, you should always seek the advice of a tax or legal professional.

The Federal Landscape: If you have legally married, no matter where that marriage was performed, you are legally married for Federal tax purposes. Whether you were married in Canada, Massachusetts, Iowa, or yes, even here in Kansas, the IRS expects married people to file their taxes as married.

Meanwhile in Kansas: Unfortunately, the State of Kansas - specifically the Kansas Department of Revenue - is stubbornly refusing to recognize legal marriages legally performed. According to the Department, same-sex couples cannot file Kansas tax returns as married. Under Kansas law, the marital status under which you file your Federal taxes is the marital status under which you file your state taxes. HOWEVER: The Kansas Department of Revenue is requiring same-sex married couples to complete an extra worksheet (see http://www.ksrevenue.org/pdf/iiallocation14.pdf) that re-calculates your income tax as though you were never married in the first place.

There are currently two lawsuits - one in state court, the other in Federal - challenging this procedure, but they are slowly grinding through the legal process. The US Supreme Court might rule on this issue by June. April 15th gets closer every day, however, and many people can't wait until even that date to apply for any refunds due. Here are some options we've discussed with tax pros and community members:

Some same-sex couples have filed their Kansas taxes as married, even with the ban in place. Some couples have had their tax returns accepted without question, while others have not. This is probably a very risky option that could cause problems down the road.

If you need your Federal and state refunds immediately, with a minimum of hassle, you're going to have to "bite the bullet" and file your Federal taxes as married, do the Kansas worksheet, and file your Kansas taxes as single. You might be able to file amended returns once/if marriage equality is recognized nationally.

If you are not desperate for a refund, file a Federal request for an extension. Extensions are granted automatically, and automatically reset the due date for your return to October 15. We expect the question of marriage equality to be answered, once and for all, before the end of June. WARNING: An extension does not put off the due date for your tax payments! To avoid penalties and interest, you must pay any estimated taxes due by April 15, even if you have filed for an extension!

If you want to file your Federal return right now, and put off the State: It can be done, but the process is a bit tricky. These steps must be followed in order:

1. File your Federal extension. Once filed, the State of Kansas is notified by the IRS of the extension request. You must do this first, because once you file your Federal taxes, it's not possible for you to apply for a separate extension for Kansas!

2. File your Federal taxes. Some "storefront" tax preparation services may not want you to file electronically unless you file Kansas at the same time. Either be prepared to file by mail, or find a different tax prep service.

3. Once the marriage equality question is resolved, file your Kansas taxes. If you file electronically, your Federal taxes will have to be re-filed with your Kansas taxes. Don't panic! Go ahead and have your tax prep service refile your Federal taxes. The Federal filing will be rejected as duplicate, but the Kansas filing should go through.

Please note: We are hearing that some tax preparation professionals are telling married, same-sex couples they must file their Federal taxes as single. This is incorrect. See the IRS' FAQ for same-sex couples at http://www.irs.gov/uac/Answers-to-Frequently-Asked-Questions-for-Same-Sex-Married-Couples. No matter where your marriage license was issued, if you are legally married in any jurisdiction, you must file your Federal return as married!

Let us know how it goes. Whether you have a positive or negative experience with a tax professional, whether or not the State of Kansas gives you any hassle, and so on, share with us anything unusual. It helps us help other LGBT Kansans in the same situation.

Remember! If you have any question or doubt, talk to a tax professional, your financial advisor, or a tax attorney.

The Gayly – February 26, 2015 @ 12:50pm.