Tax Considerations for Qualified Domestic Partners (QDPs)
Federal tax law changed in 2013 when the Internal Revenue Service and the US Department of Treasury ruled that same-sex couples, who were legally married in jurisdictions that recognized their marriages, were to be treated as married for federal tax purposes. These couples may also be known as Qualified Domestic Partners (QDPs) under Washington State law.
This ruling applies only to couples who are considered legally married and does not apply to Registered Domestic Partnerships.
If you are in a Registered Domestic Partnership, and your partner and/or child(ren) do not qualify as eligible dependents under IRC 152, the UW must report the cost of the insurance that UW provides for these dependents and the insurance contributions you make as wages on your IRS Form W-2 (displayed in box 1, 3 and 5). This is called “imputed wages.”
The UW determines IRC 152 eligibility based on the information you provided on your the Declaration of Tax Status. This form is completed at the time you enroll in a PEBB health insurance plan, or at any time you change your enrollment due to a qualifying Life Event.
If you determine that your Declaration of Tax Status was incorrect for the prior tax year or requires updating at this time, contact the ISC.
For more information about Qualified Domestic Partner tax status, see the Health Care Authority’s Dependent Verification information.