Same-gendered spouses in New York can file their state tax returns as married as a result of the Marriage Equality Act. New guidance issued on July 29, 2011, from New York's Department of Taxation and Finance explains how the state's Marriage Equality Act applies to personal income taxes, estate taxes, sales tax and withholding issues.
Preparing a NY state return for gay married couples is going to be a little more complicated that just checking a different filing status on the return. Couples will need to first prepare a federal tax return using either the married filing jointly or married filing separately status, and then use that "pro forma" federal tax return as the starting point for their NY state return. However, gay couples will still have to file their own separate federal tax return as if they were unmarried (that is, using either the single or head of household status).
That means preparing (at minimum) four sets of tax returns: two unmarried federal returns, one married federal return (for NY), and one married NY return. Or if the couple will file separately for New York, then they'll prepare six sets of tax returns: two unmarried federal returns, two married-filing-separate federal returns (for NY), and two married-filing-separate NY returns.
Gay couples in New York can also update their state withholding with their employers to begin using the married withholding tax rates and to exempt their spouse's health insurance benefits from state taxation.
New York is now one of eleven states that permit all lawfully married couples to file jointly regardless of their marital status under federal law.