I am doing my daughter's taxes. On her W2 is a Code T benefit category. Her company has many benefits lumped into a category called "Family Building Benefits" which include Adoption, Egg Freezing, Envitro Fertilization, Surrogacy, and others. She had the elective procedure of Egg Freezing done in 2020. When you use the Code T in Turbo Tax it defaults to Employer-Provided Adoption Benefits and requires you to fill out Form 8839 that documents the Adoption of a Child. I tried to fudge the form to indicate this is not an adoption, submitted the completed taxes to the IRS, and immediately got the rejection with an error code on Form 8839 (which I expected). Any ideas on how to handle this very confusing Code T benefit? Do I delete Form 8839 and resubmit the return. Any help is appreciated.
Code T is only for adoption benefits. the IRS is going to compare the w-2 on her return to the w-2 submitted to the government. with code T on one but not the other she can expect a notice from the IRS. she'll have to contact her employer concerning this.
Thanks for the prompt reply. Just to be clear: her W2 has the Code T on it. I put Code T on her 1040, so it does match, but it's not going to work since it is not for Adoption Services. So what I need to do is have her employer change her W2 code to something else acceptable to the IRS. Correct?