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Questions and Answers on Value of Coverage for Adult Children Age 19-26
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Article Content
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Q
| What is the imputed value of covering a child age 19 to 26 who is not a tax dependent in 2010?
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A
| Click here to see the estimate provided by PEBB to state payroll departments.
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Q
| Why will Oregon include the value of this coverage on my W-2 when the federal government doesn’t consider it income?
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A
| Oregon’s legislature determines the connections of federal income tax regulations with the state’s tax regulations. During its last session, the legislature connected “adjusted gross income” for Oregon taxes with federal regulations beginning 2011. Congress passed this act and its provisions after the last legislative session, so the state legislature has not yet had an opportunity to act on a retroactive change.
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| Will providing this coverage for my dependent affect my taxes for the 2011 tax year?
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| No. Statute on adjusted gross income for 2011 already links state with federal. If you enrolled eligible children for coverage in 2011, you don't need to take any action.
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Q
| Why didn’t PEBB advise me of the potential tax impact of covering a non-tax-dependent adult child during 2010?
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| PEBB was not aware that it could have potential tax implications. As soon as the issue was brought to staff’s attention, they discussed it with heads of agency and university payrolls and with the state’s Department of Revenue to determine impacts and processes, and to develop communications. PEBB continues to work with payroll, the DOR and agencies to ensure employees receive correct information.
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