California affords the same rights to registered domestic partners as to married individuals. Any amounts spent on domestic partner healthcare is exempt from California taxes under Revenue and Taxation Code section 17021.7.

How do domestic partners file taxes?

Domestic partners file separate federal tax returns California domestic partners file as individuals for federal filing, however, under California law, the state return must be filed as a married return. This ”mock” federal return never goes to the IRS; you submit it with your California state return.

What is a domestic partnership for tax purposes?

A registered domestic partnership provides a couple the same rights, protections, and benefits as a married couple in the State of California. The Federal Government does not recognize domestic partnerships and therefore the benefits for the domestic partner become a reportable or taxable income for the employee.

Which states tax domestic partner benefits?

Some states, such as Massachusetts, New York, Iowa, Vermont, and New Hampshire, tax benefits provided to domestic partners under the theory that they could get married, regardless of whether they are opposite- or same-sex domestic partners.

Is a domestic partner the same as spouse?

Domestic partners, whether the same or opposite sex, live together as a couple but are not formally married. With this relationship, they frequently can qualify for spousal benefits, like health coverage through an employer group plan.

Are domestic partners responsible for each other debts New York?

During the marriage, a spouse is generally not responsible for debts of the other spouse that were incurred prior to the marriage; nor is a spouse responsible for debts incurred solely by the other spouse (although in other states that are “commu- nity property” states, spouses will be liable for such debts).

Is a domestic partner considered a dependent?

Federal law treats benefits for spouses, children and certain dependents the same way. However, a domestic partner is not considered a spouse under federal law. To qualify as a dependent, your partner must receive more than half of his or her support from you.

What kind of tax do registered domestic partners pay?

In addition, each registered domestic partner owes self-employment tax on half of the net earnings of the business.

Can a registered domestic partner be claimed as a dependent?

If a registered domestic partner’s (Partner A’s) support comes entirely from community funds, that partner is considered to have provided half of his or her own support and cannot be claimed as a dependent by another.

What do registered domestic partners have to report?

Registered domestic partners must each report half the combined community income earned by the partners. In addition to half of the community income, a partner who has income that is not community income must report that separate income.

What are the tax consequences of domestic partner health coverage?

For employers, we have much more detail available in our ABD Office Hours webinar Health Benefits for Domestic Partners: Review of the Tax and Coverage Rules for Employers. Below is a short summary for employees. Please be aware that the Company is required by applicable tax law to treat domestic partner coverage as taxable in the following manner: