Legislation would retroactively give refunds to same-sex married couples who were denied opportunity to lower tax bill by filing jointly
Washington, D.C. – On the ten-year anniversary of Obergefell v. Hodges, which recognized a constitutional right to same-sex marriage, and the twelve-year anniversary of U.S. v. Windsor, which struck down as unconstitutional the federal definition of marriage as between one man and one woman, U.S. Senator Patty Murray (D-WA) joined Elizabeth Warren (D-MA) and Susan Collins (R-ME) in the reintroduction of the bipartisan Refund Equality Act to ensure that married same-sex couples can amend their tax returns back to the date of their marriage, helping them secure an estimated total of $55 million in refunds.
The legislation will be reintroduced in the House by Rep. Judy Chu (D-CA) as part of the PRIDE Act, which combines the Refund Equality Act and Equal Dignity for Married Taxpayers Act.
“This bill takes an important step forward to right past wrongs and ensure everyone, no matter their sexual orientation, is treated fairly under our tax laws,” Senator Murray said. “Whether it’s codifying protections against discrimination in our civil rights laws or making sure married same-sex couples aren’t penalized under our tax code I will always fight to advance equal treatment of all Americans, no matter who they are or they love.”
“No one should ever have to pay more in taxes because of who they love,” said Senator Warren. “I’m fighting to reverse this discrimination and get couples the refunds they are owed.”
“For years, legally married same-sex couples were not allowed to file joint tax returns and missed out on refunds they otherwise would have received,” said Senator Collins. “This bipartisan bill takes the practical step of giving those couples the opportunity to file amended returns and receive the full refunds they are entitled to.”
“For years, same-sex married couples were denied the ability to file taxes jointly and claim tax refunds they had rightfully earned because of the Defense of Marriage Act. Twelve years ago, the Supreme Court’s Windsor decision corrected this injustice, but IRS rules about amending tax returns have prevented these couples from claiming all of the refunds they should have earned,” said Rep. Chu. “The PRIDE Act would finally address this by enabling same-sex couples to rightfully claim the tax refunds they deserve as well as update the tax code to promote dignity and equality by erasing gendered language of husband and wife that leaves out same-sex couples. This Pride Month, I am proud to join with my House and Senate colleagues in introducing this pro-equality legislation.”
Specifically, the Refund Equality Act would:
- Allow same-sex couples who were married in jurisdictions that recognized same-sex marriage prior to 2013 – including Massachusetts, Connecticut, California, Iowa, New Hampshire, Vermont, and Washington, D.C – to file for income tax adjustments for those years, back to the date of their marriage;
- Creates exceptions for two tax code limitations: Section 6013(b), which gives married couples three years to begin filing jointly after their most recent separate returns, and Section 6511(a), which requires a claim for tax credits or refunds to be filed within three years of the initial return; and
- Creates exemptions including adjustments to capital loss carryback and adjustments for retired service members who receive an award of disability compensations.
According to a 2021 estimate by the Joint Committee on Taxation, this bill would return $55 million in refunds to taxpayers whose marriages were systematically discriminated against.
The legislation is also co-sponsored by Minority Leader Chuck Schumer (D-NY), Ranking Member of the Senate Finance Committee Ron Wyden (D-OR), and Senators Angela Alsobrooks (D-MD), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Maria Cantwell (D-WA), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Tammy Duckworth (D-IL), Dick Durbin (D-IL), John Fetterman (D-PA), Ruben Gallego (D-AZ), Kirsten Gillibrand (D-NY), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Andy Kim (D-NJ), Angus King (I-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Alex Padilla (D-CA), Gary Peters (D-MI), Jack Reed (D-RI), Jacky Rosen (D-NV), Bernie Sanders (I-VT), Brian Schatz (D-HI), Adam Schiff (D-CA), Jeanne Shaheen (D-NH), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-MD), Mark Warner (D-VA), Raphael Warnock (D-GA), Peter Welch (D-VT), and Sheldon Whitehouse (D-RI).
This legislation is being reintroduced alongside Senator Wyden’s Equal Dignity for Married Taxpayers Act—which Senator Murray also cosponsored—to protect LGBTQ+ Americans from inequality and discrimination by removing gender-specific references to marriage in the tax code.
The legislation is also endorsed by the Human Rights Campaign (HRC), Services & Advocacy for GLBT Elders (SAGE), Children of Lesbians and Gays Everywhere (COLAGE), the Movement Advancement Project, and MassEquality.
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