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University Of Pennsylvania To Offer Tax Offset To Same-Sex Couples PDF Print
Written by Instinct Staff | Thursday, 24 May 2012
Tags: penn, university of pennsylvania, domestic partner, tax offset, paychecks, benefits, gay couples, same sex, straight couples

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Employees of the University of Pennsylvania who are in a same-sex relationship will get a little boost in their paychecks to bridge the gap and match a tax benefit once limited to heterosexual married employees.

Because Pennsylvania and federal law fails to recognize domestic partners as dependents, Penn employees in said relationships have to pay taxes on their partner's benefits. Straight couples aren't required to do so, resulting in higher-take home pay for heterosexuals. That's all about to change, though.

From a release:

Beginning July 1, the University of Pennsylvania will provide a tax offset of as much as $125 per month for employees who are covering same-sex domestic partners under their Penn medical plans, with a maximum of $1,500 per year. This offset will appear in employees’ paychecks as additional taxable income — minus applicable state and federal taxes — starting in late July.   

Employees who have elected to cover a same-sex domestic partner under a Penn medical plan will receive a letter outlining the tax offset. Any faculty or staff wishing to add a domestic partner to a medical plan has until June 30 to do so for coverage effective July 1.

On or after July 1, employees can make changes only during a qualifying life event or the annual Benefits Open Enrollment period.

Many kudos sent your way today, Penn!

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