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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?

If your partnet doesn't work, you may be able to claim her as a dependent on your tax return. To do this, she would have to have earned less than $3400 for the year. But if she's staying home and taking care of home/kids then you can likely take her exemption.
If you can find comparable insurance at a similar cost, you'll be ahead to get it on your own - expecially if you can itemize your deductions on your tax return. Whatever you pay in premiums is deductible in that case, so rather thanbeing taxed on the income, you are now eligible for a deduction. I don't typically advise this, but if you're being bumped up 10% based on what the company pays, it seems better to not pay tax at all on the premiums. BUT, to really, exactly arrive at an answer, we'd have to know your actual income, other deductions you might have, whether you have kids, etc.
Your best bet is to figure this out after you have your taxes done this year. Ask your tax advisor what he/she thinks - and if they can't figure it out, ask for the office manager or someone with enough experience to do so - it's not that hard.
On the other hand, you are taking a stand in saying that your partnet is as important to you as any individual in a heterosexual marriage. You've boken a barrier that is still common in the US. Might be worth the variance in tax/income to keep making that stand, fighting the fight, and opening doors for those who come behind you.
Good luck!

Does your partner work?

If she has wage/investment income of less than $3400 and you pay all of the bills, you may be able to claim her has a dependent on your tax return and in doing so, may be eligible to exclude the insurance from your pay.

Keep in mind, you can't easily buy health care outside of a job. The $40/month extra you are paying in taxes wouldn't get you near a normal premium.

Since no one's tax rate is 100%, its almost always better to pay the tax on a fringe benefit rather than pay for the fringe benefit.

If you are in the 25% tax bracket, it basically means you are saving 75% when you compare that to paying it yourself.

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