imputed health care cost for CA RDP

Forum|Forum|5 years ago
May 7, 2021
1 reply
19 views

I'm ready to split a CA registered domestic partner return into two single returns and learned the one working partner was given numbers for imputed income from their employer for health insurance for the non working partner. I cannot tell by looking at the W2 if the imputed income was included already. Boxes 1, 3, 5 and 16 (state wages) are all the same. A paystub shows employee and employer pre and post tax medical and dental deductions so it appears they are tracking the benefit but how do I know if it was included in federal income but not CA income?

Thank you

Lacerte Tax

This topic has been closed for replies.

qbteachmt

Level 15

"but how do I know if it was included in federal income but not CA income?"

Well, you stated Fed wages are the same as the State breakout, which means there wasn't anything different for CA. And you stated you have all the clarity of pre-tax and post-tax. And you stated the employer provided data specifically described as "for the non working partner."

What part still is missing, then?

Don't yell at us; we're volunteers

L

LSTAXAuthor

Level 5

sorry for the delay - I was getting page errors when I tried to respond.

The W2 boxes 1, 3 5 and box 16 (CA state wages) are all the same amount. Federal was treated correctly - employer partner health insurance deduction was post tax. CA doesn't conform to that tax treatment so shouldn't the W2s in these situations have a lower amount in box 16 - lower by the imputed income for partner's health insurance?

Thank you

qbteachmt

Level 15

"CA doesn't conform to that tax treatment"

I'm still a bit confused. Sorry. You are asking about "that tax treatment" but which tax treatment is this?

You stated it was provided for information purposes. You stated it was paid post-tax, which means it reduces the takehome. There is/was no tax benefit, then. It's no different than if the person paid personally for that amount, but the employer included it in the premium payments. This is what I describe in my payroll class as, "The employer did the Banking." This is because it is a group policy; but the employee paid the cost.

The employer gave info that is provided for CA required proof of coverage, because CA has the ISR. It also is provided for any other reason, such as self-employment coverage deduction.

What you describe is that the person's Fed Gross also is their CA Gross. How is this wrong?

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO