Every December my employer adds some $7k of 'income' to my last paycheck to account for the cost of employer paid health insurance premiums for my domestic partner. My domestic partner is claimed as my dependent and qualifies as a medical dependent, which to my understanding means that the employer's cost is not supposed to qualify as income for me. When I asked, my employer told me that they don't take 'medical dependent' status or anything else into account and just add that 'income' to the paychecks of everyone who uses the domestic partner plans, and that I need to discuss with my accountant.
So I have a two part question:
1) Am I correct that those $7k should not count as income and that I can recover the extra taxes they took out of that last paycheck via my federal tax return?
2) Where do I enter that in Turbotax? I purchased Premier, so I assumed it would have a wizard that would address this situation, but it never came up.
