Is the value of employer provided health care benefits for adult dependent children considered imputed income to employees?
Author: Jayne Zanglein, Western Carolina University
No. The Affordable Care Act (ACA) requires health plans that cover dependent children to provide coverage up to age 26. The value of employer provided health care benefits provided to a child under the age of 27 is excluded from the employee's gross income, even if the child is not a dependent for federal tax purposes.