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Level 1

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

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?

6 Replies
Level 1

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

Thank you very much for your help. I'll try that!
Level 20

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

"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.
Level 7

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

@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

Level 20

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

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

Level 7

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

@Hal_Al 

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

Level 20

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

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