My federal withholding taken out doubled since I added my girlfriend to my medical benefit, should that happen

Answer 1

Did you revise your W-4? That determines your federal withholding. Perhaps its the medical insurance premium that has increased.

Answer 2

Post the numbers and we can have a look. That doesn't sound right. Your total withholding would go up as you're now paying for her medical insurance but your Federal (and possibly State) income tax withholdings would normally go DOWN somewhat.

Gross
FITW
FICA SS
FICA Med
SITW
Medical
Dental
Retirement
Other
Net

Then and now.

Answer 3

You really need to go talk to someone in payroll.

Additional benefits for domestic partners is almost always taxable because the partner is usually not eligible to be a dependent on your tax return. Health care for the partner can be expensive--$300 a month or more and more income, more tax.

If your partner is a dependent on your tax return and you can show that this situation will continue (both can be hard to do since you aren't married), you may be able to get payroll to make this a pre-tax benefit.

Answer 4

Adding your girlfriend to your medical insurance would raise your medical deduction considerably, but should have no effect on your federal withholding. Talk to your payroll department or payroll person.

Answer 5

How is your girlfriend eligible to receive a medical benefit? Boy I must have missed something.

Answer 6

Nope, technically less should be witheld for taxes because you have less taxable income, since medical benefits are taken out before your wages are taxed. Speak to your employer about that.

Answer 7

federal withholding has nothing to do with who's on your insurance. your insurance rate should go up a lot, are you sure you're not getting them confused?

Answer 8

Your medical plan really shouldn't allow you to put your girlfriend on your plan, since she's not part of your family.