Is spousal surcharge tax deductible?
Asked by: Kade Halvorson II | Last update: November 11, 2025Score: 4.1/5 (68 votes)
What are the rules for a spousal surcharge?
Most employers using a spousal surcharge require an employee who enrolls a spouse in the plan to pay the surcharge unless the employee can verify that the spouse is not eligible to enroll in his or her plan, is eligible but not allowed to participate for a particular reason, or is not employed.
What happens if you lie about spousal surcharge?
There's usually language on there saying if you're lying and caught, they have the right to retroactively cancel coverage for your spouse - which means all claims the spouse had for the year will be processed as if they never had insurance in place.
Why is adding a spouse to health insurance so expensive?
Increased Risk Pool: Insurance premiums are based on the risk associated with the insured individuals. Adding a spouse or child increases the overall risk pool, which can lead to higher premiums. Insurers calculate expected healthcare costs based on the number of people covered and their potential healthcare needs.
What is the caterpillar spousal surcharge?
If you're enrolling a spouse/same-sex domestic partner who has access to employer-sponsored group insurance coverage, but declines it and instead enrolls in the Caterpillar plan, you'll pay a spousal surcharge ($145/month) in addition to the rates shown here.
The Spousal Surcharge Explained
How to remove spousal surcharge?
Can an employee opt out of covering their spouse if they do not want to pay the surcharge? An employee can avoid the spousal surcharge if their eligible spouse enrolls in their own insurance plan with their own employer rather than on their spouse's plan.
What is excess spousal benefit?
When your spouse applies, the SSA tops off your current amount with an excess spousal benefit. The excess spousal benefit = (max spousal) - (your retirement benefit at FRA). After your spouse applies, the new total amount = (your current benefit) + (excess spousal benefit).
What is the average spousal surcharge for health insurance?
Recent Survey Data on Spousal Surcharges
Survey results from the 2023 Mercer National Survey of Employer-Sponsored Health Plans showed that of companies with 500 or more employees, 15% require a spousal surcharge with a median monthly surcharge of $100.
Why did my insurance go down when I added my wife?
Sharing a policy is generally cheaper because you'll split the cost of certain coverages. You benefit from your spouse's clean driving record: If you've had violations or accidents, your spouse's clean driving history may result in a more competitive rate.
Is it worth it to add domestic partner to health insurance?
However, adding a domestic partner to your health-insurance plan could increase your income taxes based on whatever your employer contributes to the plan's overall cost (this is treated as “income” by the IRS).
Why do companies charge spousal surcharge?
Cost Savings: Spousal surcharges can help manage healthcare costs by dissuading spouses who have their own employer's health coverage from joining the employee's plan, thereby reducing overall premium expenses.
Can I stay on my spouse's health insurance when I turn 65?
It depends on how you are receiving your current insurance. If you are receiving employer-sponsored health insurance through either your or your spouse's job when you turn 65, you may be able to keep your insurance until you (or your spouse) retire(s).
Can I have my own insurance and be on my husband's insurance?
Can I keep my plan and join my spouse's plan? Yes, you can. If you already have health insurance, you can also opt to go on your spouse's as a form of secondary insurance, says Gross. Your primary insurance will pay its share of your medical costs first.
Does spousal surcharge apply to dental?
If your spouse/domestic partner's employer offers medical coverage and you choose to provide him/her coverage under a USC plan, you'll pay a $100 per month working spouse surcharge. The surcharge is deducted from your paycheck on a pre-tax basis. The surcharge does not apply to dental or vision plans, but only medical.
What is the spousal rule for insurance?
The Working Spouse Rule states that a spouse must enroll in their employer's health plan. The rule applies if the spouse works for an employer who offers a health plan, and the employer pays at least 50% of the total premium for single coverage.
What is spousal exclusion?
The inter-spousal exclusion protects the surviving spouse when a death occurs or when a spouse retains property in a divorce settlement from reassessment. The definition of married couples includes both same sex couples as well as opposite sex couples.
Can I drive my wife's car if I'm not on her insurance?
If you're not on the owner's policy, applicable coverage will again depend on consent. Assuming the driver gave you consent to operate the vehicle or, at the very least, there is reasonable belief that you had permission to drive it, then you're probably covered.
Is it cheaper to add my wife to my health insurance?
Cost Savings
Each family is unique. That might look like: If your spouse already has employer-sponsored coverage of their own, it may be more cost-effective to have them join your plan if the premiums, deductible or out-of-pocket maximum are more affordable.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.
How do I waive my spousal surcharge?
Yes, you may waive the spousal surcharge within 30-days of experiencing one of the following qualified life events: o divorce o spouse loses job o spouse is no longer offered medical insurance through their own employer (other than COBRA coverage or re ree medical coverage) o spouse gains other medical coverage o death ...
What is the spousal surcharge for 2025?
Also, a $100 per-month Spousal Surcharge is automatically deducted from your paycheck if your marital status in Workday is showing as “Married” or not specified – so if it does not apply to you, select “Waive” to avoid the charge.
What is spousal surcharge?
A spousal or dependent surcharge involves charging an additional amount to an employee's premium in order to cover a spouse or dependent child that has access to other group coverage (not individual coverage), such as from their own employer.
How do I get the $16728 Social Security bonus?
Specifically, a rumored $16,728 bonus that had people wondering if it was true or not in 2024? Sadly, there's no real “bonus” that retirees who receive Social Security can collect.
When my husband dies, do I get his Social Security and mine?
You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement.