For same-sex couples that got married during 2013: Before, due to DOMA, there was a (taxable) "Imputed Income" line for non-cash benefits to the-then domestic partner. Now, and after the federal/IRS same-sex marriage recognition (and, therefore no more "Imputed Income"), the question is: As the couple gets married, say, Nov 2013, and the employer, by error, applied the “old” rules for Imputed Income in the W2, if a corrected W2 is issued, should the imputed income be zero or prorated to Nov?
TaxConnections Members... Answer This Question
Want To be One of Our Tax Experts? Register Here
Tax Professional Answers
Dean Marzullo
The employer can refund the all taxes to you if they were improperly withheld on the "imputed income." If a W-2 was issued and it needs to be corrected, then the employer has to issue a "Corrected W-2." You would receive a W-2c. The corrected W-2 should reflect the proper treatment of domestic partner benefit treament up to the NOvember date, that is, taxing the benefits pre-November and not taxing them post-November.
Leave a Comment
489 weeks ago