My husband received a W-2 this year for the value of his life insurance over $50,000. In box 12 there are codes M and N for the Fica and Medicare that was NOT paid on this income. Turbo Tax told us that we should expect a corrected W2, but I don't believe that's true. Do we need to report/pay this amount? If so, is there a form that we need to complete? Will Turbo Tax generate it?
To clarify:
My husband still has an active life insurance policy with his old employer.
He is being taxed on the value of said policy for amount insured over $50,000.
It's a taxable benefit, the policy was not forfeited and this is not a surrender value.
Do we need to pay the deferred FICA and Medicare under the box 12 codes M and N, is the question.
