Who is Considered a Tax Dependent for Employer-Provided Health Insurance Purposes?
A legal spouse and a dependent child under age 19 as of the end of the calendar year are automatically considered tax dependents under both federal and state tax law. An adult child is also considered a tax dependent under federal tax law until the end of the calendar year in which the child turns 26. In order for a domestic partner to be considered a tax dependent for health insurance purposes, he or she must be considered a “qualified relative” under Section 152 of Internal Revenue Code (IRC) and meet all the criteria, except for the income requirements, of a “qualifying relative” as outlined in IRS Publication 501. The Working Families Tax Relief Act of 2004 amended the requirements of a “qualifying relative” as they apply to employer-provided health insurance only. These amendments are outlined in Internal Revenue Service Notice 2004-79. These amendments relative to employer-provided health insurance are not specifically addressed in IRS Publication 501 so it may cause confusion wh
