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Got a question? Try Ask the MMA Are there income tax implications to the expanded dependent coverage?
Q: Are there income tax implications to the expanded dependent coverage?
A: The new law explicitly allows coverage for persons who have lost the status of “dependent” under the Internal Revenue Code. Coverage provided to such persons should be subject to federal taxation (in the same way that coverage provided to an employee’s same-sex spouse would be taxable under federal law). Municipal employers are urged to consult with their tax attorneys concerning this matter.
Answer provided by Paul Mulkern, an attorney who represents municipalities in the area of labor and employment law.
Got a question? Try Ask the MMA Are there income tax implications to the expanded dependent coverage?
Are there income tax implications to the expanded dependent coverage?
Q: Are there income tax implications to the expanded dependent coverage?
A: The new law explicitly allows coverage for persons who have lost the status of “dependent” under the Internal Revenue Code. Coverage provided to such persons should be subject to federal taxation (in the same way that coverage provided to an employee’s same-sex spouse would be taxable under federal law). Municipal employers are urged to consult with their tax attorneys concerning this matter.
Answer provided by Paul Mulkern, an attorney who represents municipalities in the area of labor and employment law.
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