The Internal Revenue Service (IRS) has determined that if an employer allows employees to insure dependent children over 26 years of age who do not qualify as tax dependents, a value 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 tables below.

If the child is over 26 and a tax dependent, no additional income is applied to the employee’s taxable salary. The University requires information for children over age 26 to confirm eligibility due to the student or disabled status and determine tax-dependent status. University Benefits will request this information for children over 26 years of age up to two times per year. The University reserves the right to require documentation to substantiate a dependent's eligibility status at any time.

In addition, please note that if you participate in the Health Care Flexible Spending Account program, you cannot submit any claims for a dependent age 26 or older unless they are your tax dependent.