Registered Partner in Ohio, Work pays for her health insurance amount they pay is added to my taxable income..

Okay so I finally got a new job that is willing to accept my registered partner as my "wife" as far as legally possible. I have insurance for her through them. The total amount that they pay out for her to have insurance is added to my taxable income for the year even though I don't actually make the extra. I do not mind paying the tax on it at all but I calculated how much I will be making next year if I just worked my regular 40hrs a week plus the extra that they pay per year for her insurance. That extra 4800 a year that they pay just barly bumps me up into a higher tax bracket. I do not know what I should do. In the long run I cannot tell if it is worth it or not. Should I just pay for her own insurance not from my job? Is it really worth it to have to pay an extra 10% in taxes?

Public Comments

Ask her to pay the difference?
You also need to see if your company offers any plans to defer your taxable income. Such as a IRA (Individual Retirement Account) or medical savings account. If you moved the 4800 into one of these you should save in taxes but you would lose 4800 in take home pay. However in the long run the money you put away into an IRA will grow. Contact your HR department. Also check to see if your company has a GLBT employee group. If you do not ask HR why not and how it can be started in order to help others in your situation.
usually co. insurance policies are better than private agencies... But you might check into it... that 10% either way will find it's way back to you, and out of your pocket... It sucks, but her health or your wealth, which is more important???
As you know it's not actual income that you are making, it's an assumed "Fair market Value" for the insurence for a second non-dependent adult on your employer supplied group insurence. It's called "Imputed" income and you don't actually ever see a dime of it. It cannot be invested or shuffled because it doesn't actually exist. You're then taxed on this assumed or imputed income which in many cases these taxes can add up to more than the assumed/imputed income would have added up to, if it actually existed. I know exactly what you're going through. I'm having the same issue with my employer and my covering my college student (yet legal adult) child as well as my partner, both are considered to be non-dependent adults legally. My employer offers coverage to domestic partners as well as full-time college student, adult children of employees...but the tax I'm paying actually equals MORE than the coverage payments. It's nuts!