Jump to content

Dependent who is not claimed on employee's tax return


Recommended Posts

I have an employee who has legal guardianship (joint with her live-in married boyfriend) Apparantly he cannot get a divorce since separated spouse is in & out of jail<gr>! The one child is the boyfriend's child and the other is his stepchild. Neither children are related to the employee. Altough the employee does jointly support the 2 children. The boyfiriend claims both children on his tax return as dependents; the employee does not.

We allow the employee to cover children if there is court ordered legal guardianship documentation as this employee has.

Is there a taxation issue of the value of the medical benefits provided for the children. Or is this covered under section 152 definition?

Lexy

Link to comment
Share on other sites

There is a taxation issue.

A live-in boyfriend's child is not the employee's qualifying child under IRC § 152.

The child might be a 'qualifying relative' under IRC § 152(d)(2)(H). You'll need to vet out if the requirements of IRC §§ 152(d)(1)(B), © and (D) are also met.

If not a qualifying relative, the value of the coverage to the boyfriend's child should be added to taxable income reported on the employee's Forms W-2.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

Link to comment
Share on other sites

  • 1 month later...
Guest Mr. Kite
There is a taxation issue.

A live-in boyfriend's child is not the employee's qualifying child under IRC § 152.

The child might be a 'qualifying relative' under IRC § 152(d)(2)(H). You'll need to vet out if the requirements of IRC §§ 152(d)(1)(B), © and (D) are also met.

If not a qualifying relative, the value of the coverage to the boyfriend's child should be added to taxable income reported on the employee's Forms W-2.

Section 152(d)(1)(B) does not have to be satisfied -- see section 105(b).

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...