The following chart compares state vs federal tax treatment of common employer-provided fringe benefits, including group-term life insurance, moving expense reimbursements, educational assistance under IRC § 127, and retirement benefits under IRC § 401(k) plans and IRC § 125 Cafeteria plans.
This chart has been updated to remove same-sex marriage information, as federal and state tax treatment is now aligned. The title now reflects its current focus on taxation of benefits for those in same-sex civil unions and domestic partnerships, which continues to vary by state.
The IRS issued proposed regulations defining the tipped jobs that qualify for deduction under the OBBBA, and which will affect employer wage reporting on a tipped employee's Form W-2, Wage and Tax Statement.