Taxable Health and Dental Insurance Employed Graduate Students, Postdoctoral Scholars, Research Interns

Children may be covered until the end of the year in which they turn 26.  Coverage for children who are full-time students or disabled can continue as long as they continue in that status.

The Internal Revenue Service (IRS) has determined that if an employer allows employees to insure dependent children past the age of 26 who do not qualify as tax dependents, there is a value that must be added to the employee’s taxable salary when reporting income earned on the annual W-2.  This imputed income, which will be added to the tax base monthly, is calculated using the following tables:

Additional taxable value by type of contract and number of people for UIGRADCare
# of people covered 2 3 4 5 6 7 8
Employee/Child $721.50 $481.00 $360.75 $288.60 $240.50 $206.14 $180.38
Family   $377.33 $283.00 $226.40 $188.67 $161.71 $141.50
Additional taxable value by type of contract and number of people for SHIP
# of people covered 2 3 4 5 6 7 8
Employee/Child $320.00 $213.33 $160.00 $128.00 $106.67 $91.43 $80.00
Family   $398.67 $299.00 $239.20 $199.33 $170.86 $149.50
Additional taxable value by type of contract and number of people for Dental
# of people covered 2 3 4 5 6 7 8
Employee/Child $15.50 $13.00 $9.75 $7.80 $6.50 $5.57 $4.88
Family   $23.33 $17.50 $14.00 $11.67 $10.00 $8.75

If the child is over 26 and disabled, or a tax dependent, there is no additional imputed income that is applied to the employee’s taxable salary.  Also, please note that if you participate in the Health Care Spending Account program, you will not be able to submit any claims for a dependent over the age of 26 unless they are your tax dependent.