Citi Benefits Handbook
Cost of Civil Union Partner/Domestic Partner Benefits
The cost of coverage for a civil union partner/domestic partner is the same as the cost for a spouse. The cost of coverage for a civil union partner's/domestic partner's child(ren) is the same as the cost for a dependent child. For the cost of civil union partner/domestic partner coverage in a particular plan, call the Citi Benefits Center.
If your civil union partner/domestic partner and his or her child(ren) qualify as your dependents under Section 152 of the Code, as determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof, your contributions for civil union partner/domestic partner medical, dental, and/or vision coverage will be taken on a before-tax basis. However, if your civil union partner/domestic partner and his or her child(ren) do not qualify as dependents for federal income tax purposes as described above, you will pay for their medical, dental, and/or vision coverage with after-tax dollars.
Tax Implications
According to federal tax law, your taxes may be affected when you enroll your civil union partner/domestic partner in Citi coverage. This Benefits Handbook does not address state and local tax treatment. For information on how applicable tax law may apply to your personal situation, consult your tax adviser.
On the Certification of Domestic Partnership you will need to certify the tax status of your domestic partner and his or her children.
If Your Civil Union Partner/Domestic Partner Qualifies as a Tax Dependent
If your civil union partner/domestic partner and his or her children qualify as dependents under Section 152 of the Code, as determined without regard to subsections (b)(1), (b)(2), and d(1)(B) thereof, your contributions for their medical, dental, and/or vision coverage will be deducted from your pay before taxes are withheld, and there are no tax implications for you. Since the requirements are complex, consult your tax adviser for information on how civil union partnership/domestic partnership benefits will affect your taxes and those of your civil union partner/domestic partner.
Generally, a member of your household qualifies as your tax dependent under the Code if:
  • You provide more than 50% of his or her financial support;
  • He or she lives with you for the entire year; and
  • He or she is a citizen or legal resident of the United States.
You may, but are not required, to certify whether your civil union partner/domestic partner and his or her dependent children qualify as dependents under Section 152 of the Code, as determined without regard to subsections (b)(1), (b)(2), and d(1)(B) thereof. If no certification is on file with Citi, the benefits are considered taxable.
If Your Civil Union Partner/Domestic Partner Does Not Qualify as a Dependent for Tax Purposes
Generally, medical, dental, and vision coverage are not taxable benefits if they are provided to you, your spouse, or your dependents. However, if your civil union partner/domestic partner and your partner's children do not qualify as your dependents for income tax purposes, the value of their coverage is considered taxable income to you.
This additional income, known as "imputed income," will be shown on your pay statement and Form W-2 Wage and Tax Statement for the year in which coverage was effective. You will be required to pay taxes on this additional income, as required by the Code.
Example: Total Citi cost for Employee Only coverage is $450 per month. Total Citi cost for Employee Plus Spouse/Partner coverage is $900.
The $450 cost for Employee Plus Spouse/Partner coverage (known as imputed income) will be treated as taxable income to you.
You will see a line item on your pay statement that shows $450 in imputed income. The taxable amount of that benefit (as determined by Citi's payroll department) will be deducted from your pay. In this example, $100 in taxes may be deducted from your pay for the $450 in imputed income.