What Is Domestic Partner Insurance Coverage. Registered domestic partnership—avoids state income taxes only: However, a domestic partner is not considered a spouse under federal law.
To be a federal tax dependent under code §105(b), a domestic partner must be a “qualifying relative” or a “qualifying child” of the employee as defined by the code. Domestic partner health insurance is when health insurance benefits are extended to a domestic partner, much like they often are to married spouses. Health coverage for a domestic partner, and any children of a domestic partner, is typically a taxable benefit.