How can I claim back tax paid on imputed income when my spouse was wrongly registered by my employer as domestic partner?

[arno]

I noticed that my employer wrongly registered my spouse as domestic partner (DP) for the whole of last year. As a result the insurance premium for my spouse was considered as extra taxable income (imputed income). The W2 has already been issued and my employer says there's nothing he can do on his side. How can I claim the extra tax I paid?

[arno]

Thank you very much for your help. I'll try that!

[Hal_Al]

"my employer says there's nothing he can do on his side".

He's wrong. A corrected W-2 is the ONLY way to handle it properly. He also needs to refund you the FICA tax withheld on the imputed income. It's a hassle for him to get that back from the Social Security Administration.

That said, there is a work around in TurboTax, to eliminate the income tax. But there is no way to get FICA back, other than a corrected W-2. Your employer has to do that for you.
1. Enter a line 21 deduction, for the same amount.  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
Scroll down to:
-Less Common Income
      -Misc Income, 1099-A, 1099-C
       - On the next screen, choose – Other reportable income - Enter the number with a minus sign (-) in front. Briefly explain at description.

[Metalfamily2112]

@Hal_Al 

I have the same problem but in my case it’s my mother, who I claim as tax dependent . Also , this happen  for 2017 , 2018 and through this year.

i didn’t know that because my mother is my tax dependent, I didn’t  have pay this premium tax to insure an LDA, I just learned that couple weeks ago when I was reading some forms about  adding/dropping beneficiary from the medical insurance.. 

Sometimes we just trust our employers. In my case I just assumed that I had to pay  the premium tax for medical benefits.

The same way as the person before, they told me that could not do anything, just to make sure going forward  that I don’t have to pay  the premium tax anymore (imputed income)

How it would be the best way to handle this?

can I still ask for 2017, 2018 corrected W-2?

What’s I need do about this year from Jan until now?

Thank you so much

DG

[Hal_Al]

@Metalfamily2112   You have a different topic and should ask a new question, rather than tagging on to an existing thread.

[Metalfamily2112]

@Hal_Al 

Thank you Hal Al, I’m new on this, where do I new to go start my new question? 

[Hal_Al]

Try this:  At the top of the screen, click on Support; then Get Started in Community, then ask a question

[rusticshack]

I am in a similar situation as the OP.  I put my fiance on company healthy insurance plan and when we got married during 2019 tax year, I did not inform them of the change during 2019 or within the 60 day grace period.  At this point, since it is technically my oversight, we work is not willing to re issue my W-2 and make the correction.

I see you are suggesting that a line 21 deduction of all the imputed income reported during 2019 and since we have been married would be appropriate.  Reading about line 21 reporting, this doesn't sounds like an of the described examples, though I understand it is meant as a catch all for income not applicable elsewhere.  Is it really appropriate to use line 21 in this way?

[Trigganometry]

How do you find out how much imputed income tax was assessed for domestic partners health benefits for both federal and state?  I just see the total amount including my wages on my W-2.

[Hal_Al]

It my be  in box 14 or box 12. Your pay stub, particularly year end, would be a good place to look.  Otherwise, you'll have to ask your employer.