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Taxation of Employee Benefits: Illinois

Taxation of Employee Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • Same-sex marriage has been legal in Illinois since June 1, 2014 and the value of health benefits provided to an employee's same-sex spouse, and any of their dependents, are tax free. The same applies to same-sex civil unions, but not for federal income tax purposes. See Same-Sex Couple Health Insurance Benefits.