Recent changes in the federal income tax filing status for certain same-sex couples have been issued after a United States Supreme Court decision and subsequent ruling by the Internal Revenue Service (IRS). A same sex couple that lives in Kentucky and has been married in a state that recognizes such unions can mark their federal income taxes as “married filing jointly” or “married filing separately.” However this change in federal tax treatment has no affect on same-sex couples for state tax purposes at this time. As of 2004 the Constitution of the Commonwealth of Kentucky was amended to prohibit recognition of same-sex marriages (Section 233A) therefore same-sex couples legally married in a different state will still be required to file separate Kentucky income tax returns.
Taxpayers are responsible for providing the same information on the Kentucky state return that would have been provided prior to the issuance of IRS Revenue Ruling 2013-17 2013-38 I.R.B. 201 (August 30 2013). Following these federal developments three lawsuits have been filed in Kentucky challenging the constitutionality of both Kentucky’s amendment and its statutory prohibition against same-sex marriage. These cases are in the preliminary stages and rulings on those cases could alter the direction of the state. If so additional information will be provided soon.
Each deduction on the Federal Form 1040 Schedule A return that is claimed jointly shall be separated in accordance with individual ownership and reported on the individual’s Kentucky single return. Any itemized deductions related to joint ownership should be separated by an agreement or some other acceptable method of division between the two parties.