Taxable Health and Dental Insurance - Faculty and 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:

2019 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 $603.00 $402.00 $301.50 $241.20 $201.00 $172.29 $150.75 $134.00
Family N/A $528.67 $396.50 $317.20 $264.33 $226.57 $198.25 $176.22
2019 Additional taxable value by type of contract and number of people for Dental II
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 $44.33 $33.25 $26.60 $22.17 $19.00 $16.63 $14.78

2018 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 $588.50 $392.33 $294.25 $235.40 $196.17 $168.14 $147.13 $130.78
Family N/A $515.67 $386.75 $309.40 $257.83 $221.00 $193.38 $171.89
2018 Additional taxable value by type of contract and number of people for Dental II
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 $44.33 $33.25 $26.60 $22.17 $19.00 $16.63 $14.78

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

Also, please note that if you participate in the Health Care Flexible 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.


ABOUT OUR SITE: The information presented on our website describes only the highlights of the plans and does not constitute official plan documents. Additional terms and conditions apply. If there are any discrepancies between the information contained herein and the official plan documents, the plan documents will govern.