My husband and I are both federal employees. We have one daughter. I am a GS-6 Step 10 and my husband is a GS-14 Step 1.
Is it more beneficial money wise/tax wise to have our health insurance, dental insurance, and vision insurance come out of my paycheck or his paycheck? Or does it not matter? I can't seem to figure it out.
Currently we have the health, dental, and vision family plans coming out of my paycheck but I was wondering if we would save a little more money if all three were to come out of his paycheck since he makes much more money than me and those deductions are pretax?
I hope this makes sense!
Thank you for your time!
If you're filing jointly, the only time it would matter is if you are either 1) picking a different insurance (and thereby paying a different price than you were in the past), or 2) if the insurance prices are based on % of pay (I'm not aware that any of them are currently using this kind of fee structure, but I haven't compared prices in quite a while so I could be in error). If the company is charging based on % of pay, then obviously you paying would be more advantageous.
However, this is my understanding of it. I don't know the insurance side of things nearly as thoroughly as I know TSP. I'm sure there's someone else who knows better than I do, and will hopefully either confirm and/or correct my comments above.
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"It's not what happens to you, but how you react to it that matters" Epictetus
Disclaimer: The contents of this thread are known to the state of California to cause cancer. (As they always seem to know more than the rest of us)
Hmm....I think it does matter if someone who makes $15k files jointly with her GS14 hubby. Because "THEIR" joint MAGI will be way over $15k and therefore not eligible for most low income tax breaks. Generally speaking of course. YMMV.
I’m in the camp of IRQVET, the Hubby should bear the brunt (60/40, 70/30 split) of most family-related expenses including:
FLEXIBLE SPENDING &
SUPPLEMENTAL DENTAL INSURANCE
both parties need to “maximize”
ROTH IRA CONTRIBUTIONS
LIFE INSURANCE &
LONG-TERM HEALTH INSURANCE
I had Duel-Income (for half a paycheck) & what a difference-maker it was. That was last millennium & my focus is on the present (& the future) as it were…
Best of Luck (everyone) in all you choose to endeavor!!!
With. HDHP/HSA you do have tax advantage and you can contribute up the the maximum amount in pretax dollars for family and/or individual plans.
Generally the individual plans (employee only) are less expensive. It really depends on your needs and health. but you may want to. look at doing individual. & self +1 (daughter) to compare with cost of family plan you currently have and the type(s) of plans that best suit your needs.. If you stick with thee same family plan and file MFJ for taxes, I don't think it makes much difference who's pay check it comes out of. If you opted for an HDHP family plan, it would. make more sense for it come from the higher salary to fully fund the HSA each year.
The other consideration is how close either of you are to retirement. You have to have FEHB 5 years prior to take it into retirement. When you do retire, your premiums are post tax vs pre tax. So. there are other factors you may want to consider. Sorry if all this is confusing, but there are many factors to consider.
Perhaps. I'm going by what the Virginia tax web site states....jedi757 wrote: ↑Tue Aug 16, 2022 7:32 pm
"You may qualify to claim the Credit for Low Income Individuals (CLI) if your total family Virginia adjusted gross income is below federal poverty guidelines. Family Virginia adjusted gross income includes the total Virginia adjusted gross income for you, your spouse, and your dependents, even if they do not file their own Virginia returns."
https://www.tax.virginia.gov/low-income ... als-credit
https://law.lis.virginia.gov/vacode/tit ... .1-322.02/
Citing from the 2017 Form 760 Resident Individual Income Tax Booklet
https://www.tax.virginia.gov/sites/defa ... ctions.pdf
Section 39 Federal and State Employees - Any individual who qualifies as a federal or state employee earning
$15,000 or less in annual salary from all employment can subtract up to $15,000 of the salary from that
state or federal job. If both spouses on a joint return qualify, each spouse may claim the subtraction.
The subtraction cannot exceed the actual salary received. If you claim this subtraction, you cannot
claim a Credit for Low-Income Individuals or Virginia Earned Income Credit.