I live with a domestic partner who I am allowed to cover on my employer's health benefits. Unlike married couples, however, the IRS considers this benefit to be a form of taxable income. So, on each paycheck, I get lines that read "Imputed income - Health", "Imputed income - Dental" and "Imputed income -Vision." Together this comes to approximately $130 per paycheck. This is not actual cash that is added into my gross, but taxes are taken out on it as though it were cash.
My question is, will the bankruptcy court consider this to be cash income? Or is it an IRS shell game for tax purposes that is not the equivalent of cash income? The answer to the question may determine whether I qualify for 7 or 13.
My question is, will the bankruptcy court consider this to be cash income? Or is it an IRS shell game for tax purposes that is not the equivalent of cash income? The answer to the question may determine whether I qualify for 7 or 13.