Declaration of Tax Status
The Working Families Tax Relief Act (WFTRA) is an IRS regulation that requires the State of Montana to apply the proper tax treatment (before or after tax) to benefits for any spouse or domestic partner currently enrolled in medical, dental, or vision benefits. Employees certify the tax status of their spouse or domestic partner through the completion of a Declaration of Tax Status Form (see below).
To assist in completing this form, flow charts outlining the IRS rules applicable to a covered spouse or domestic partner are provided below.
- Declaration of Tax Status form
- Spouse tax status flow chart
- Domestic Partner tax status flow chart
- Tax Status Checklist
- Paycheck calculator
Tax Consequences
If you return the form indicating that your spouse or domestic partner is tax qualified, your tax treatment will not change.
If you return the form indicating that your spouse or domestic partner is NOT tax qualified, contributions for your spouse or domestic partner cannot be taken on a pre-tax basis, and the fair market value of the benefits provided by the State of Montana (i.e. those benefits funded through the state share) for your spouse or domestic partner will be added to your taxable income.
If the form is not returned, contributions for your spouse or domestic partner cannot be taken on a pre-tax basis, and the fair market value of the benefits provided by the State of Montana (i.e. those benefits funded through the state share) for your spouse or domestic partner will be added to your taxable income until the form is returned indicating otherwise. In this case, changes are not retroactive.
