For anyone else filing 1040NR and paying online, make sure you complete your payment by 8pm Eastern Time on the due date for it to count as paid on that day! I found this out the hard way last year when I submitted at 11pm Pacific (which was 2am Eastern) and got hit with a late payment penalty even though it was still the due date in my time zone. Super annoying!

Just wanted to add one more important tip for 1040NR filers making payments online - if you're using Direct Pay or any electronic payment method, make sure to keep a screenshot or printout of your confirmation page immediately after completing the payment. The IRS systems can sometimes have delays in processing non-resident payments, and having that confirmation number and timestamp has saved me twice when there were questions about whether my payment was made on time. Also, if you're paying a large amount (over $10,000), be prepared for potential additional verification steps. The payment system may require you to verify your identity through additional security questions or may put a temporary hold on the payment for review. This is normal for larger payments from non-residents, but it's good to know ahead of time so you're not surprised if it happens.

This thread has been absolutely incredible - thank you all for sharing such detailed experiences! As someone just starting to navigate this imputed income decision, I feel so much more prepared after reading through everyone's real-world examples and practical advice. I'm particularly grateful for the specific dollar amounts people shared (like the $14,400 imputed income resulting in $5,400 in taxes) and the breakdown of how this actually affects your paycheck versus your W-2. The payroll mechanics explanation about take-home pay decreasing while gross income increases was something I never would have understood without this discussion. A few things I'm planning to do based on this thread: - Get a written estimate from HR with specific calculations for my situation - Call our benefits provider directly for more detailed calculators - Check if my partner qualifies as a tax dependent (they're currently unemployed) - Research my state's specific rules (I'm in Oregon) - Ask about one-month testing if possible The suggestion about consulting with a CPA who specializes in employee benefits taxation is brilliant too - $200 seems very reasonable for the peace of mind and accuracy, especially given how much money could be at stake with incorrect calculations. This community knowledge sharing has been more valuable than hours of research on official websites. Thanks to everyone who took the time to share their experiences so thoroughly!

I just went through this exact situation and wanted to share some additional insights that might help! After reading through this amazing thread, I realized there are a couple of practical considerations I haven't seen mentioned yet. First, don't forget about the impact on your FSA elections if you currently have one. When I added my partner, I realized I could increase my healthcare FSA contribution to help offset some of the imputed income taxes since FSA contributions are pre-tax. This provided some additional tax relief that helped balance out the increased tax burden. Second, timing really matters if your company does cost-of-living adjustments or annual raises. I strategically waited to add my partner until after my annual review/raise took effect. This meant my base salary increase helped cushion the impact of the reduced take-home pay from imputed income taxes. One more thing - if your partner currently has individual insurance through the marketplace and receives premium tax credits, you'll need to report the change in household coverage to avoid having to pay back those credits. This caught me off guard and added some complexity to our tax filing. The key lesson I learned is that this decision touches so many different aspects of your financial picture. Taking the time to map out all the interconnected effects (like everyone has done in this thread) is absolutely worth it before making the commitment. Thanks to everyone for such thorough insights - this has been incredibly helpful for the community!

Congratulations on your upcoming wedding! I went through a very similar situation two years ago and wanted to share what I learned. The month-by-month eligibility calculation that others have mentioned is absolutely correct, but there's one additional detail that might help you feel even more confident. When you file Form 8962, there's actually a "safe harbor" provision for people whose income changes due to marriage. If your combined income for the year (including the pre-marriage months) is still under 400% of the Federal Poverty Level, your repayment amount is capped even if you technically received more credits than you qualified for. Given that your individual income was $38K and your fiancé's is $72K, your combined annual income of around $110K should still be well under the 400% FPL threshold for a married couple (which is about $140K for 2024). This means even in a worst-case scenario, any repayment would be limited. Also, definitely take advantage of that employer insurance option starting in December. Most employer plans have better coverage anyway, and it eliminates any uncertainty about marketplace calculations for the rest of the year. Don't let tax stress dampen your wedding joy - you're going to be just fine!

I'm dealing with a very similar situation - getting married in December and have been receiving Premium Tax Credits all year. Reading through everyone's responses has been incredibly helpful, especially learning about the month-by-month eligibility calculation. One thing I wanted to add that might help others: make sure to keep detailed records of when you actually get married versus when you update various systems. I've been told by a tax preparer that the IRS goes by your actual marriage date for the calculations, not when you updated your marketplace account or employer benefits. Also, for anyone in this situation, I found it helpful to request a projected 1095-A from the marketplace before the end of the year. This shows you exactly how much in Premium Tax Credits you've received so far and helps you estimate what the impact will be for those final months as a married couple. The advice about maximizing 401k contributions for the last couple months is brilliant - I hadn't thought of that strategy but it makes perfect sense for lowering your MAGI during the married filing period. Thanks to everyone who shared their experiences here. It's so reassuring to know this is a common situation with clear solutions rather than the tax disaster I was imagining!

Has anyone ever tried arguing that a change in your personal involvement with the properties constitutes a material change? Like if you were actively managing all properties when grouped, but now have become passive with one or more of them?

I've been dealing with a similar ungrouping situation and wanted to share what I learned from my research and consultation with a tax professional. The key is really understanding that the IRS looks at whether the original economic rationale for grouping still exists. Beyond what others have mentioned, here are some additional "material changes" that might qualify: - **Debt structure changes**: If you refinanced one property with significantly different terms (like switching from commercial to residential mortgage, or adding/removing personal guarantees) - **Insurance changes**: Moving from a blanket policy covering all properties to separate policies can show they're no longer economically integrated - **Tenant profile shifts**: If one property went from long-term residential to short-term vacation rental, that's a fundamental business model change - **Legal structure modifications**: Changes in LLC operating agreements, management structures, or ownership percentages The documentation is crucial - you need to show the IRS that maintaining the grouping would be "clearly inappropriate" given the new circumstances, not just that ungrouping would save you taxes. One strategy I've seen work is preparing a detailed memo explaining how the properties functioned as an integrated economic unit originally, and how specific changes have disrupted that integration. This proactive documentation can be invaluable if the IRS ever questions your ungrouping decision. Have you considered whether any of these types of changes apply to your situation?

Make sure to double check your W-2s from those years! Box 1 (wages, tips, other compensation) would include any imputed income. If your employer won't give you an accurate breakdown, look at your December paystub for each year and multiply the per-paycheck imputed income by the number of pay periods. When I had this issue, my company refused to issue corrected W-2s, so I had to file Form 4852 (substitute for Form W-2) along with my 1040-X for each year. Total nightmare but got back around $2200.

This is a really common issue that many newly married couples face! As others have mentioned, you're absolutely right that imputed income should only apply to domestic partners, not legally married spouses. The IRS is clear that employer-provided health insurance for spouses is not taxable income. I'd suggest documenting everything before you approach HR again. Print out your pay stubs showing the imputed income, gather copies of your marriage certificate, and maybe even print out the relevant IRS guidance (Publication 15-B covers this). Sometimes having the official documentation in hand makes the conversation go more smoothly. One thing to watch out for - if your employer fixes this going forward but won't issue corrected W-2s for previous years, you'll definitely want to file those amended returns. The IRS typically allows you to amend returns for up to three years, so depending on when you got married in 2022, you might be able to recover taxes from both 2022 and 2023. Keep pushing on this - it's definitely worth the effort to get it corrected!