Please note, that for undergrad and grad students (without an employed graduate appointment), adding a domestic partner to their health and dental plans will not have tax consequences. They may cover their domestic partner at the Student + Spouse premium rate for SHIP, UIGRADCare, and Student Dental.
Domestic partner is NOT a tax dependent:
The Internal Revenue Service (IRS) prevents the University from allowing the employed student to pay for coverage on a before-tax basis.
Under federal tax law, if the domestic partner does not qualify as the employed grad student's tax dependent, then the portion of the premiums the University of Iowa pays for the coverage of the domestic partner will be included in the employed grad student's gross income, subject to federal income tax withholding and employment taxes, and will be reported on the student's Form W-2. As a result, the employed grad student will also be unable to claim expenses for the domestic partner under the Health Care Flexible Spending Account (FSA) plan.
Domestic partner IS a tax dependent:
Suppose the student's domestic partner qualifies as their tax dependent. In that case, no portion of the premiums paid by the University will be included in the student's income or be subject to federal withholding or employment taxes.
If the student's domestic partner meets the IRS dependency guidelines, their domestic partner may be included in the before-tax program. These dependency guidelines require that the student provide more than 50% of the domestic partner's support. In addition, the employed grad student and the domestic partner must share the same household for the entire calendar year. For more information, please visit our Tax Implications page.
If you feel that you meet this qualification, you must note this on your Affidavit to qualify for this particular program. Otherwise, the student and the domestic partner will be considered separately concerning any University contributions and the payment of any premiums.
Dependent Child(ren):
If the employed grad student already has their own child(ren) and is responsible for their insurance, adding the partner's child(ren) to your coverage will not increase the student's cost. If you are classified as Single for Benefits coverage, adding a domestic partner with or without a child/or children will increase your costs.