Know your benefits

Domestic partner health benefits may be taxable

Feb 14, 2008 10:47 AM

The health benefits of domestic partners of UFT members are taxable income, according to the Internal Revenue Service, unless the partner is the member’s dependent for tax purposes. Members who have domestic partners who are not dependents will have the fair market value of the partner’s health benefits included as income on their W-2 forms, according to the UFT Welfare Fund.

The Fund advises members that if this “imputed” income has been added to their W-2 forms but the domestic partner is a dependent, they must provide proof both to New York City’s Office of Labor Relations and to the Welfare Fund — as providers of basic health benefits and supplemental health benefits, respectively. Proof may be in the form of a copy of their tax return or written notification from the Department of Education.

Members are advised to consult their tax advisor if they have any questions about their partner’s dependent status.

At the end of each calendar year the city’s OLR sends a letter indicating the amount added to a member’s W-2 for his or her domestic partner. Questions about the value of the city’s basic health benefits of the Welfare Funds supplemental benefits can be addressed to the City of New York Office of Labor Relations, 40 Rector St., New York, NY 10006 or to the UFT Welfare Fund Accounting Department, 52 Broadway — 7th Floor, New York, NY 10004.