Taxability of Your Health Benefits
All Retired Members with health plan dependents and Surviving Spouses/Domestic Partners must complete and submit a
Certification of Dependent Status for Health Coverage form. The medical subsidy used to provide medical benefits to dependents may be reported as imputed income to the Retired Member or Survivor for Federal tax purposes.
Those who fail to complete the Certification of Dependent Status for Health Coverage form may have any portion of the medical subsidy used to cover any persons reported to the Internal Revenue Service (IRS) as imputed income.
Those surviving spouses/domestic partners who fail to complete the certification of dependent status form may have their entire medical subsidy reported to the IRS as imputed income.
Disclaimer:
LACERS cannot determine for you if your dependent(s) are eligible to be claimed for federal income tax purposes. If you have further questions, please contact the IRS and/or consult a tax professional regarding the annual dependent requirements for federal income tax purposes. Additionally, State regulations are different for each State. Please call your State Income Tax Authority.