Penn ends tax offset for same-sex marriages
This comes after the Supreme Court's decision in June
September 24, 2013, 9:42 pm · Updated September 24, 2013, 11:50 pm·
The University will decrease the extra benefits it gives to employees in same-sex marriages, according to an announcement by the Division of Human Resources in Tuesday’s Almanac.
In July 2012, the University began offering up to $1,500 per year to offset the higher taxes that employees in same-sex partnerships had to pay compared to those in heterosexual marriages. On the heels of the Supreme Court’s decision to strike down the Defense of Marriage Act in June — which opened the door for same-sex couples to receive federal tax benefits — Penn is cutting the additional benefits for legally married same-sex couples.
After the ruling, employees whose medical benefits extend to their partners will no longer have to pay taxes on the value of that benefit, obviating the need for Penn to make up the difference.
However, the federal tax benefits only apply to couples who are legally married in one of the 13 states that recognize gay marriage — a list that doesn’t include Pennsylvania. For employees who are in a same-sex domestic partnership, but are not married, Penn will continue to provide the tax offset.
In August, Penn President Amy Gutmann applauded the Supreme Court ruling, calling it a “a win for our country and the University.”