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

[Qian1248]

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....

[Vanessa A]

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:

1. 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.
2. Select continue
3. In the screen the says Let's check for other situations select Didn't get a W-2 or received and incorrect W-2
4. Answer yes to do you still want to complete a substitute W-2
5. Continue through and answer the questions
6. You will need to explain what you did to get it resolved the your employer and also how the calculations are incorrect

[Qian1248]

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]

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 @VanessaA above and submit the return without contacting the IRS first and then they will contact you by mail later.

[Qian1248]

I have contacted IRS successfully this morning. The suggestions I got from IRS as below:
1. Instead of doing e-file, printed out all my forms and mail them to IRS
2. Fill form 4852, including the sperm buying reimburse into my total income

3. Attach assistant documents like my sperm buying receipts

Just wondering, I can use Turbo tax to fill form 4852, right? Will Turbo tax generate 4852 automatically once I manually enter the W2 by myself with box1 updated?

[RogerD1]

Yes, TurboTax can assist you with filling out the Form 4852.  A screen appears after you've entered the dollar data for the W2 that says "Let's check for other situations".  Check the box for "Didn't get a W2 or received an incorrect W-2 (manually calculate my earnings)".  Once you click Continue, the next page will ask if you need a substitute W2 - select Yes, then Continue.  You'll then enter an explanation of the steps you took to get your W2 corrected by your employer.  The next screen will allow you to print out the substitute W2 and give you further instructions on steps you should take.