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Reimbursement - Filing Status

The following are the procedures and criteria used by the Bank to calculate your tax reimbursement based on your marital status.

1. Married retirees. The Bank will base the tax reimbursement calculation on the status of “married filing jointly”. Please note that this position is for IDB reimbursement purposes only. The retiree is still at liberty to file his/her federal and state tax return in the manner that they deem appropriate.

In exceptional cases retirees may present a request, in writing, to the Division Chief, Compensation, Benefits and HR Services to authorize that the tax reimbursement be calculated using "married separate filing” status, if one or more of the following reasons is presented:

  • Using “married separate filing” status produces a lower tax reimbursement than using married filing jointly status;
  • The retiree’s spouse is not a U.S. tax resident but would become a U.S. tax resident if the spouse and the retiree filed joint tax returns; and/or
  • The retiree is unable to file joint tax returns with the spouse due to difficult marital circumstances, including legal separation or pending divorce.

Any request approved will be valid only for the corresponding tax year. Requests for “married separate filing” status must be re-applied on a yearly basis and comply with the requirement/s described above.

2. Unmarried retirees. The Bank will use the actual filing status of the individual. If an unmarried retiree has dependents, the retiree may be asked to consider filing using “Head of Household status”, if eligible.

To ensure timely reimbursement under the appropriate filing status, requests for exceptions should be sent to no later than February 28 of each year and will be answered by March 30. All other requests will be handled upon receipt and will be reviewed within 4-week period. 

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