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Tax Implications for Adding an OQA

Question: Are there tax implications for adding an OQA?

Answer: Yes. Federal tax law requires taxation of the university contribution toward premiums that are attributable to the OQA and the OQA’s children. This is known as imputed income. The tax on the imputed income is deducted from the faculty or staff member’s monthly or first and second biweekly paychecks of the month. Refer to Other Qualified Adult - Taxation of OQA Coverage for additional information. In addition, the university recommends all employees wishing to enroll an OQA and/or their OQA’s children under a university-sponsored benefits plan consult with a qualified tax advisor to fully understand the tax issues involved.