The Internal Revenue Service (IRS) issued an outline for obtaining tax refunds for same-sex spousal health coverage. They recognized that a same-sex spouse will be treated as a spouse for federal tax purposes as long as the couple is lawfully married under state law. This means that the value of employer-provided health coverage for an employee's same-sex spouse is excludable from the employee's income for federal tax purposes.
The IRS outlined the following steps for taxpayers:
- Taxpayer to contact employer and request a corrected Form W-2. Use the W-2 to complete tax return.
- If no corrected W-2 is issued, taxpayer should file tax return using original Form W-2 and file a Form 2852 reporting correct amount of taxable wages - subtracting the value of excludable spousal health coverage.
- Describe how the taxpayer determined correct amounts on Form 4852 by updating them to exclude the value of spousal health coverage, as permitted by Rev. Rul. 2013-17 an Notice 2014-1.
For more detailed instructions and more information about the issue, check out this article.