Taxable Domestic Partner Benefits The employee will have imputed income reported on Form W-2 equal to the FMV of the domestic partner’s (or child’s) coverage. This amount will also be subject to income tax withholding and employment taxes.

How is domestic partner health insurance taxed?

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 is domestic partner imputed income calculated?

Imputed income is defined as the value of the domestic partner coverage minus the after-tax amount contributed toward the coverage.

Do you have to claim your domestic partner on taxes?

No. Registered domestic partners may not file a federal return using a married filing separately or jointly filing status. Registered domestic partners are not married under state law. Therefore, these taxpayers are not married for federal tax purposes.

How is domestic partner coverage taxed for employees?

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: Imputed Income: You will receive imputed income for the fair market value of the employer-share of the premium for domestic partner’s coverage.

When does an employer impute income to a domestic partner?

When employers provide health coverage to domestic partners (or children) who are not Code §105 (b) tax dependents, the employer must impute income to the employee equal to the FMV of the coverage (less any after-tax payments by the employee).

How does a domestic partner qualify for health insurance?

The following conditions must be met for a domestic partner to qualify as an employee’s tax dependent for health coverage purposes under federal law: The employee and domestic partner must have the same principal place of abode for the entire calendar year;

Where do I report my domestic partner health insurance?

Instead, the value of the coverage provided (less any amount paid for the coverage on an after-tax basis) must be included in the employee’s gross income, is subject to federal income tax withholding and employment taxes, and must be reported on the employee’s Form W-2.