States, Federal, Civil Unions, returns

[Kimokeo]

If the State grants civil unions, then it goes forward for joint returns of same-sex couples.
The Fed, meanwhile, doesn't allow it.

So, how do you reconcile returns between fed and state? You are supposed to carry amounts over to state returns as they appear on federal returns, but that's not possible if two returns are filed with the Fed and only one with the State.

Is the States requiring separate filing because the Fed does? Is that going to be a rights issue?

[Arthur Rubin]

(Move to tax practice? This is a real problem in some jurisdictions.)

An excerpt from the California form 540 instructions (Bolding in the original, my emphasis in red) appears below.

Use the same filing status for California that you used for your federal income tax return.

Exception: If you file a joint tax return for federal, you may file separately for California if either spouse was:
• An active member of the United States armed forces or any auxiliary military branch during 2008.
• A nonresident for the entire year and had no income from California sources during 2008.
Caution – Community Property States: If the spouse earning the California source income is domiciled in a community property state, community income will be split equally between the spouses. Both spouses will have California source income and they will not qualify for the nonresident spouse exception.

If you had no federal filing requirement, use the same filing status for California you would have used to file a federal income tax return.

Same-sex married individual or registered domestic partners (RDPs) who file single for federal must file married/RDP filing jointly or married/RDP filing separately for California.

The instructions go on to state that SSMCs (Same Sex Married Couple) or RDPs may use an adjustment worksheet in the instructions and attach their separate 1040s to the joint return, or may prepare a federal pro forma Form 1040.

(Editing for spelling corrections, including one from the instructions.)