Discussion:Amendment for same sex couple & W-2C

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Discussion Forum Index --> Basic Tax Questions --> Amendment for same sex couple & W-2C


Discussion Forum Index --> Tax Questions --> Amendment for same sex couple & W-2C

Jaykid007 (talk|edits) said:

8 April 2014
Hello, I've been researching for an hour on the internet and the gold box and running out of time and steam.

Situation is simple...same sex couple married and filed to single returns for Federal and MFJ CA tax return.

Employer issues W-2C to correct the imputed tax on same sex partner health benefit.

Question is:

Can I just amend the single return and correct the wages with the W-2C? Nothing says that I need to also change the filing status to married filing joint or separate. No reason to since it doesn't provide any tax benefit to the married same sex couple. I understand on the IRS website that it is option for prior years.

Can anyone give a solid answer that I can amend the SINGLE return since I have a W-2C and call it a day?

Thanks!

Jaykid007 (talk|edits) said:

8 April 2014
It is a 2010 tax return so I'm running out of time.

Kevinh5 (talk|edits) said:

8 April 2014
I don't think you can. The tax benefit is clearly because they were married, you can't ignore that.

Ckenefick (talk|edits) said:

9 April 2014
I agree with K5's theory and logic...But here's what the IRS says:

Q10. If an employer provided health coverage for an employee’s same-sex spouse and included the value of that coverage in the employee’s gross income, can the employee file an amended Form 1040 reflecting the employee’s status as a married individual to recover federal income tax paid on the value of the health coverage of the employee’s spouse?

A10. Yes, for all years for which the period of limitations for filing a claim for refund is open. Generally, a taxpayer may file a claim for refund for three years from the date the return was filed or two years from the date the tax was paid, whichever is later. If an employer provided health coverage for an employee’s same-sex spouse, the employee may claim a refund of income taxes paid on the value of coverage that would have been excluded from income had the employee’s spouse been recognized as the employee’s legal spouse for tax purposes. This claim for a refund generally would be made through the filing of an amended Form 1040. For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html. For a discussion regarding refunds of Social Security and Medicare taxes, see Q&A #12 and Q&A #13.

Example. Employer sponsors a group health plan covering eligible employees and their dependents and spouses (including same-sex spouses). Fifty percent of the cost of health coverage elected by employees is paid by Employer. Employee A was married to same-sex Spouse B at all times during 2012. Employee A elected coverage for Spouse B through Employer’s group health plan beginning Jan. 1, 2012. The value of the employer-funded portion of Spouse B’s health coverage was $250 per month. The amount in Box 1, “Wages, tips, other compensation,” of the 2012 Form W-2 provided by Employer to Employee A included $3,000 ($250 per month x 12 months) of income reflecting the value of employer-funded health coverage provided to Spouse B. Employee A filed Form 1040 for the 2012 taxable year reflecting the Box 1 amount reported on Form W-2. Employee A may file an amended Form 1040 for the 2012 taxable year excluding the value of Spouse B’s employer-funded health coverage ($3,000) from gross income.

...one interpretation would be JayKid's interpretation...

Jaykid007 (talk|edits) said:

9 April 2014
I read that exact question, answer, and example. Ambiguous to me if you just go ahead and just file the amendment without changing the filing status.

Ckenefick (talk|edits) said:

9 April 2014
What do you have to lose? A rejected claim? Big deal.

I assume, though, even though you may not have run the calc, that MFJ would increase the tax, is that right?

Jaykid007 (talk|edits) said:

9 April 2014
By like $100, not much benefit. I live how everything is a guessing game especially since they don't have a tax law unit anymore.

Ckenefick (talk|edits) said:

9 April 2014
"The taxpayer recently received a corrected Form W-2, which is attached herein," is all you need to say...

Joanmcq (talk|edits) said:

9 April 2014
Later in the Q&As it says that to amend for one benefit of married you have to take all of the issues that goes with that status. The employer was not supposed to amend the W2 unless the employee signed a document saying they would amend to MFJ or MFS.

Ckenefick (talk|edits) said:

9 April 2014
Not sure if that's in the Q&A, but I do think it is in the RR. We've had this discussion before, as it pertains to consistency:

http://www.taxalmanac.org/index.php/Discussion:DOMA_and_Amended_Returns

IRS is not permitted to pick apart a refund claim and accept anti-taxpayer adjustment and reject pro-taxpayer adjustments. The same rule applies to taxpayers. Of course, that's not to say either side won't do it. And it's not to say Jaykid can't take a position based on ambiguity in a Q&A and try to cut some time out of the process along with a hundred bucks. All the IRS can do is reject the claim. And if that happens, Jaykid can likely perfect the claim out of time.

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