Legal Question in Tax Law in New Jersey
I have my girlfriend (who is unemployed and who I live with) on my company's health plan as a domestic partner. Since she is non-qualified dependent, my firm is withholding taxes on the imputed income generated by the value of this benefit. Several married couples I know do not incur this income when both parties are on the same health plan. Is this due to the fact that they are married? From what I have read, spouses can never be considered dependents of each other, yet the spouse with the coverage has the other spouse as a dependent in their health plan. Since we have no plans to marry, will I continue to incur the imputed income and related taxes as long as my domestic partner is covered by my health plan? Also I work in NY and live in NJ.
1 Answer from Attorneys
The law is quite complicated since NJ has rules governing Domestic Partnerships and Covol Unions. I suggest you put this in your search engine and hopefully it will answer your questions. You could also "GOOGLE" NJ and Domestic Parners to get additional information.
LSNJLAW - Civil Unions and Taxes