Important Tax Information for Domestic Partners
Due to IRS regulations, the payroll deductions for covering your domestic partner on a Christ Hospital medical plan work differently than if you were covering a spouse. The cost for coverage is the same as it would be if you were married; however, the portion of the premium to cover your domestic partner must be made on an after-tax basis.
Additionally, the amount The Christ Hospital contributes toward the healthcare coverage of your domestic partner is considered taxable, and will be included in your income for purposes of calculating taxes withheld from your paycheck. You may also be subject to other state and local taxes.
To review your options and costs, consult a tax professional.
Tax Implications for Domestic Partner Benefits Coverage
If you cover your domestic partner, you are responsible for the taxes on the contributions and the taxes on the imputed income (or the value of the benefit).
Taxes on Contributions
The amount you pay for domestic partner coverage should be paid with after-tax dollars, which results in a higher contribution than if your domestic partner was an eligible dependent under IRS rules. To determine the portion of your contribution that is taxable, refer to the charts below.
Taxes on Imputed Income
Because your domestic partner is covered under a medical, dental or vision plan provided by The Christ Hospital, the value of the benefit must be included in your taxable income, known as imputed income. Please refer to the Medical, Dental and Vision Rate Sheets, for the imputed income column.