Taxable Health and Dental Insurance - Faculty, Professional and Scientific, Merit Supervisory Exempt, Merit Confidential, House Staff

Children may be covered through the end of the calendar 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 over 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 UIChoice
Number of People 2 3 4 5 6 7 8 9
Employee/Child $455.00 $303.33 $227.50 $182.00 $151.67 $130.00 $113.75 $101.11
Family N/A $387.67 $290.75 $232.60 $193.63 $166.14 $145.38 $129.22
2015 Additional taxable value by type of contract and number of people for Dental 2
Number of People 2 3 4 5 6 7 8 9
Employee/Child $50.00 $33.33 $25.00 $20.00 $16.67 $14.29 $12.50 $11.11
Family N/A $42.00 $31.50 $25.20 $21.00 $18.00 $15.75 $14.00
2014 Additional taxable value by type of contract and number of people for Dental 2
Number of People 2 3 4 5 6 7 8 9
Employee/Child $50.00 $33.33 $25.00 $20.00 $16.67 $14.29 $12.50 $11.11
Family N/A $39.67 $29.75 $23.80 $19.83 $17.00 $13.22 $13.22

If the child is over age 26 and a tax dependent, there is no additional income applied to the employee’s taxable salary.  The Benefits Office will send you a form to verify your dependent's status and continued eligibility to remain on your insurance.  You must verify dependent eligibility with the University Benefits Office annually.

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 age 26 and above unless they are your tax dependent.