Last year and earlier this year we discussed that certain states have not conformed to the Affordable Care Act for state tax dependents. That meant that some adult dependent health plan coverage could be taxable in those states that followed the old pre-Affordable Care Act dependent rules. States have been quietly switching over to the new federal rules throughout this year. Wisconsin was the last holdout. However, last week, the Wisconsin governor signed a law adopting the federal tax treatment of adult dependents for Wisconsin state income tax purposes. The law will take effect no later than November 18, 2011. After that, employers can stop imputing income on adult dependents for Wisconsin state income tax purposes.
Interestingly, I have heard that Puerto Rico has not adopted the federal rules yet. No word on other U.S. territories or outer shelf continential areas. A link to the Wisconsin law is as follows: http://legis.wisconsin.gov/2011/data/SB203hst.htmlDisclaimer
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.
