Adding a domestic partner

[smhyatt13]

Hello~

I may want to add my fiance as a domestic partner to participate in my insurance/dental plan at work.  He has two additional dependents on his insurance now, so that would be three people total added to mine for a family plan.  First, I don't think they'd be able to be tax dependents for me, would they?  And if not, the added cost per month is $1,130 for medical and dental.   I assume that would be taxed every month?  Would you be able to tell me the amount of tax that would get taken out of my check?

Thanks!

[sdammons · Accepted solution]

This is a very good question, however, there are many variables to consider.

First, let's address whether the additional people being added to your insurance will qualify as your dependents for tax purposes. The IRS has rules that must be met in order to be considered a dependent. These rules are based on whether the person is your Qualifying Child or your Qualifying Relative. To determine if the tests are met, see Rules for Claiming a Dependent on Your Tax Return .

For the second part of your question, it sounds like the insurance contributions will not be excluded from your gross income. If this is the case, I do not expect your withholding to change unless you have determined that you have dependents.

To determine the amount of withholding based on your circumstances, it is best to use the IRS' Tax Withholding Estimator.