0

My health insurance is provided by the employer of my spouse, but my employer wanted to provide the benefit of insurance so he paid me the money that my spouse was paying, so if my spouse pays $40 for me, I get $40 from my employer, now for simplicity suppose that my marginal tax rate is 50%, so I get only $20. But I paid $40 to my wife. How do I fill that information to get tax return?

How should my spouse fill her tax return?

  • 2
    How is it different from any other compensation your employer paid you? The fact that it was "earmarked" is meaningless. – littleadv Jan 27 '14 at 1:45
  • Hm, Could I fill something to say that this money was transferred to my spouse given that she is in a lower tax bracket? – k-dev Jan 27 '14 at 2:23
  • 1
    and how is different from any other money you give to your wife? You do realize that this is a ridiculous argument, don't you? – littleadv Jan 27 '14 at 4:16
  • 1
    @k-dev It's your income, not your spouse's income. You can give her the money, but you'll still be paying tax on it. – Chris W. Rea Jan 27 '14 at 5:24
  • The comments answer my question. – k-dev Feb 2 '14 at 20:29
1

Putting Chris's comment as an answer:

It's your income, not your spouse's income. You can give her the money, but you'll still be paying tax on it

To elaborate more - the general principle of income taxation is that income is taxed when received, and specific expenditures can be deducted. If you giving the money to your spouse is not one of this specific deductibles - then it is not deductible. Your income, nevertheless, is still taxed to you - as you're the one to receive it.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.