Domestic partners file separate federal tax returns California domestic partners file as individuals for federal filing, however, under California law, the state return must be filed as a married return. This requires the creation of a “mock” federal return that reflects joint-filing status.

How does California define domestic partner?

Under prior California law, Registered Domestic Partners (RDP) are deemed to have the same rights and responsibilities as legally married spouses. Existing law defines domestic partners as two adults who have chosen to share one another’s lives in an intimate and committed relationship of mutual caring.

Does California require domestic partner benefits?

Under California insurance law, carriers must offer the same benefits to registered domestic partners as they do for spouses. Employers should be aware that more employees may be eligible for and enter into registered domestic partnerships and they may request their domestic partner be added to the employer plan.

Can a domestic partner file a federal tax return in California?

Domestic partners in California must file separate federal tax returns. Transfers of assets, funds or inheritances and health insurance benefits provided to a domestic partner are considered taxable income for federal purposes. However, domestic partners in California may file joint state tax returns.

Can a domestic partner be a tax dependent?

Tax Dependent—Avoids Federal and State Income Taxes: If your domestic partner qualifies as your tax dependent under Internal Revenue Code §152 (as modified by §105 (b)), your domestic partner’s coverage will be treated in the same manner as a spouse for both federal and state income tax purposes.

How to terminate a domestic partnership in California?

If you want to officially terminate a domestic partnership in California, you can file a Notice of Termination of Domestic Partnership Form NP/SF DP-2 with the California Secretary of State, provided certain conditions are met.

What are the tax consequences of domestic partner health coverage?

For employers, we have much more detail available in our ABD Office Hours webinar Health Benefits for Domestic Partners: Review of the Tax and Coverage Rules for Employers. Below is a short summary for employees. Please be aware that the Company is required by applicable tax law to treat domestic partner coverage as taxable in the following manner: