Dp imputed income what is

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Your session has expired. Please log in as a SHRM member. To be a qualifying relative, a domestic partner must meet all the following requirements:. Some employers also offer coverage to children of a domestic partner who are not dependent children of the employee. However, one of the requirements for being a qualifying relative is that an individual must not be a qualifying child of any other taxpayer. Unfortunately, the IRS has not provided any official guidance about determining the value of health coverage.

When coverage is added for more than one individual e. Another method used by some employers is to determine the value based on the incremental cost of adding coverage for the individual.

So if the employee has family HDHP coverage resulting from coverage provided to a domestic partner, the employee may make HSA contributions based on the family maximum contribution limit set by the IRS. Some analysts predicted that fewer employers would offer domestic partner benefits after same-sex marriage was legalized, but this has not turned out to be the case. Domestic partner benefits are still offered by many employers, so the proper administration and tax treatment of benefits remains as important as ever.

While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.

Search for:. Domestic Partner Benefits The legalization of same-sex marriage nationwide has made it easier for employers to administer the tax impact of health benefits provided to same-sex spouses of employees. If you enroll your domestic partner and his or her child, your imputed income would be the difference between the City's contribution for employee only coverage for you and family coverage. If you enroll your domestic partner, your imputed income would be the difference between the City's contribution for employee and spouse coverage and employee only coverage.

Imputed income is separate from - and in addition to - your monthly plan cost. Imputed income applies even if you pay no monthly cost for your medical plan. The amount of your imputed income depends upon the plan in which you are enrolled and the level of your coverage. Imputed income is taxable - that is, it increases your taxable gross income for federal and state income taxes as well as for FICA Social Security and Medicare and taxes are withheld from your paycheck.

Your imputed income is reported on your annual Form W Based on IRS requirements, imputed income applies only for coverage of an eligible family member who is not your tax dependent.

If you will claim your domestic partner or your partner's child as your tax dependent, you should have no imputed income.