Gay married couple had SS and Medicare taxes withheld on imputed health benefits. The spouse with the imputed wages made $130,.000. So she got back excess FICA on her Form 1040. The imputed wages are like $6,000. So if we file Form 843 it seems to me there are no SS taxes paid on the $6.000 just a small amount of Medicare tax. Looking for confirmation that I am thinking straight.
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The employer is responsible for filing for back payroll taxes, and must refund them to the individual. You can only get a refund if you amend back returns to married.
If the employer won't amend payroll (only one return 941-x required per year), then the individual may file for refund. Check the IRS FAQs for when that determination is made and if there is any documentation required from the employer. -
Oh, and yes, there should only be a bit of Medicare tax overwithheld.Comment
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The employer has signed off, they will not be going after the overpaid taxes. If it is only medicare it is not worth it to go after the overpayment in this case. The overpaid medicare tax will be like $80. If I charge $50 to do the work it makes no sense to me.
Again, it is my thinking that in a year where the taxpayer earned $70k form employer 1 and 60k from employer 2 and recovered the excess FICA on the original return that there is no SS tax to go after on $6,000 on imputed income from employer paid health insurance for the spouse?Comment
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