Frequently Asked Questions

The Ohio Department of Taxation has compiled a list of frequently asked questions covering many different categories.

To view the questions, click on the "Select Category" bar and then click on the category you are interested in.  A list of questions will appear pertaining to that category. Then click on the question you are inquiring about and the answer will appear.

What is Ohio’s tax treatment if I use my health flexible spending account (FSA) to pay medical expenses for my same-gender partner?

For federal tax purposes, an employer may provide an FSA for the purpose of paying qualified medical expenses for the account holder, their spouse and any dependents under IRC section 152. The maximum amount that may be contributed to an FSA is $2,500. This amount is not subject to federal income tax, and is treated as a reduction in the employee's taxable wages 

Because Ohio does not recognize a same-gender marriage, contributions to an FSA would be taxable for Ohio tax purposes if the FSA provides benefits to a same-gender spouse that is not otherwise a dependent under IRC section 152. In such a case, employers are prohibited from reducing the employee's taxable wages for amounts contributed to the FSA for Ohio purposes.

For example, if an employee designated $2,500 to an FSA that allows expenses to be paid for the employee's same-gender spouse, $2,500 must be included in the employee's taxable wages for Ohio and must be reflected on the employee’s W-2 box 16.