@bball617 wrote:
I'm in a similar situation. Married mid year and spouse was listed as a DP before, however... She has no income and meets the tax dependent qualifications.
I've talked to my employer and they will not remove the imputed income paid in the beginning of the year from my tax base while she was a DP even though she would of been considered a tax dependent. I've tried and tried and they will not budge.
Are my options to send in a Corrected W2 when I get it or file a 1099-misc and enter in the total imputed income( with a negative sign off course)
There is no recognized procedure to do either one. You should have designated your partner as a qualifying dependent before the start of the year, either when you joined the company, or at the most recent open enrollment period. Do you have proof that you enrolled your partner as a dependent and the employer got it wrong? Or was the first time to tried to address this issue only after the marriage?
If you enter negative income, that will remove the income from your taxable income but not from your social security and medicare tax wage base. To correct the social security and medicare tax issue you would need to submit a substitute W-2 and then file form 843 to request a refund of the social security and Medicare tax.
Since there is no recognized procedure to do either one, I would contact a local tax professional for assistance. You will need someone who will represent you if you are audited, which will probably happen if you dispute the imputed income.
