My W2 has box 12 code T with sperm buying expense reimburse, which should not be reported in 8839. But my turbo tax generate 8839 automatically

Forum|Forum|4 months ago
March 17, 2026
1 reply
484 views

I asked Turbo Tax AI how to solve it, and it recommended me to contact my employer to generate W-2c form to remove the sperm buying expense from box 12 code T.

My employer refused as "When a surrogate is not being utilized the cost related to the purchase of any donor tissue: egg, sperm, and embryo would fall under the Adoption Assistance benefit.

Some of the reimbursements from the Adoption Assistance benefit may be exempt from federal income tax under the IRS Adoption Credit (IRS Tax Topic No. 607). Form 8839 is used to determine what may be taxable or nontaxable.

Due to the complexities of tax law we are not able to advise on how you should file."
So how can I deal with this situation?
My Turbo Tax automatically generated 8839 because the W2 box 12 code T with the amount of expenses. But I don't have any adopted child's name to fill since it is only sperm buying. So that form 8839 is with everything empty but only with the 9 adoption assistance filled. But if I go back to check for federal items and the federal review again, it will show me error because no details for adopted child....

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Vanessa A

Level 15

Code T is for employer provided adoption benefits. However, in order to claim the adoption credit or exclude those benefits from taxable income, the expenses must relate to the adoption of an eligible child. Sperm does not meet the definition of an eligible child. Since you mention there is not a surrogate, I am assuming this is for IVF treatment. IVF treatment may fall under medical expenses which could be claimed for itemized expenses (if already included in taxable income), but not the adoption credit.

Since your employer is refusing to issue a corrected W-2, (I'm assuming box 1 has been lowered by the amount in box 12) you can take the following steps to make this taxable income.

You should contact the IRS who may then send a letter to your employer. The IRS will send you information on form 4852 to fill out, which you can do in TurboTax following the instructions below.

To fill out form 4852 take the following steps:

Enter the W-2 as you believe it should be which would mean adding the amount in box 12 code T to the amount in box 1.
Select continue
In the screen the says Let's check for other situations select Didn't get a W-2 or received and incorrect W-2
Answer yes to do you still want to complete a substitute W-2
Continue through and answer the questions
You will need to explain what you did to get it resolved the your employer and also how the calculations are incorrect

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Qian1248Author

Level 2

I contacted my employer again, who still insist that there is no problem with the original W2. And sperm buying reimburse should be filled in W2 box 12 with code T. I should be responsible to figure out how to file tax based on that.

And I have also tried to call IRS with the 800 number, which I have tried yesterday and today with talking to real person. So far I have not figured out an answer yet. So the problem has not been solved yet.

RobertB4444

Level 15

Contacting the IRS these days is definitely an exercise in patience. You may be better off filing the tax return with an explanation of the changes that you have made. Follow the instructions from @Vanessa A above and submit the return without contacting the IRS first and then they will contact you by mail later.

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