@JBrulltmann wrote:
What if the employer is NOT paying any additional portion of the premium for the domestic partner's coverage.
For instance, say the employer pays $1,000 per month for the employee, and the employee pays $500 per month pre-tax. The employee's domestic partner total cost would be $1500 (as an add-on to be deducted from the employee's payroll). So the company is not offering any additional 'income' to the employee's wages. The additional premium cost would come right out of the employee's check.
In this case, we would not need to worry about imputed income or a revised W2, correct?
Also - since the employee would be paying the full benefit as one premium, could we deduct it pre-tax (because it is one payment)?
Thanks for your help!
-JB
If the employer is not providing an unallowable benefit, then it won't be taxed. In your example, the employee would see a $500 pre-tax payroll deduction for their own insurance and a $1500 after-tax deduction for the DP insurance. The $1500 after-tax premium is an allowable itemized tax deduction for medical expenses (subject to the usual limitations) but the $500 pre-tax payroll deduction is not allowed as a further itemized deduction.
