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discount

Joined
Jan 17, 2012
Messages
218
So I guess Target is adding DomesticPartner employee discount cards. That sounds like a good thing, right? Well, I guess that depends on how you look at it. I guess because the US Government doesn't recognize a domestic partnership or civil union relationship, they therefore consider any benefits given to that domestic partner Taxable Income. One example is that if you insure your girlfriend or boyfriend on your Target insurance, Target taxes you for the amount they contribute to your health insurance costs, which is called Imputed Income. Well, I guess it turns out the SAME thing is going to happen with this, so your Domestic Partner is going to be allowed to have a discount card, but the 10 or 15 % you save (depending on whether you have a Target Visa or Target Credit Card for the extra 5%) will be considered TAXABLE income, i.e. Imputed Income added your income and taxed accordingly! This isn't anything against Target ,in fact if Target really wanted to demonstrate their loyalty to their employees families including their DP's, they could give an extra 1 or 2 % off on the DP's discount card to cover that tax implication if they wanted to =)
 
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Jan 17, 2012
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  • #3
it's called Imputed Income, which is where your employer must tax the employee who benefits from Domestic Partner benefits, whether they are medical, dental, or in this new case, your 10% employee discount on purchases
 
Joined
Nov 16, 2011
Messages
1,203
no, i said HOW are they going to tax that? how are they going to keep tract of when your DP is using the discount? How are they going to keep tabs on how much money you're saving and tax that?
 
Joined
Oct 30, 2011
Messages
177
I really don't feel like Target is going to be like "oh here, federal government, here's an itemized list of every time so-in-so's boyfriend used her discount card to save a few cents on a fountain drink..." Um no. And forgive my ignorance, but why would that affect just the "domestic partner" and not the actual employee?
 

redeye58

Hasta Ba Rista, Baby!
Joined
Jun 9, 2011
Messages
19,647
Might be. The TM will usually give their number if shopping at their own store or use their card when shopping at another store but the domestic partner would use the card.
Could be encoded in the bar code on the card itself (if you're a suspicious person by nature).
 
Joined
Nov 16, 2011
Messages
1,203
i highly doubt this is going to happen at all. First of all, if that was the case you could simple just always use YOUR card and not the dependent card. In fact, my husband never uses the "spouse" card because he lost it and i just gave him mine and use my number. This is the most ridiculous idea that i've heard on here. I love this site but i can't tell you how many times i've rolled my eyes at the things that people say ARE going to happen with nothing to back it up.
 
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Jan 17, 2012
Messages
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  • #9
RedandKhaki, I am quoting FACTUAL Target information. If you make a purchase with the employee discount card, those purchases will NOT be charged income tax on the employees paycheck, but if the Domestic Partner takes advantage of the NEW benefit that Domestic Partners are NOW being allowed to HAVE a discount card, those "savings" will be added to the TM's INCOME and charge Imputed Income Tax, please research the words IMPUTED INCOME, and you'll see I'm right.
 
Joined
Jun 16, 2011
Messages
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Target does keep track of how much a tm saves using their discount. I have seen my discount savings on my benefits page when checking up on my 401k. I don't know how they can tell the difference between the dependent and tm cards. It just lists tm discount savings. My eligible dependents are not listed separately and the domestic partner would be considered an eligible dependent. There is no "imputed income" line on my pay check. The deductions for insurance, etc. come off of my income - nobody is sending in additional money to pay for the cost of insurance above the cost for a tm only. Is this different for those with domestic partners?
 
Joined
Oct 30, 2011
Messages
177
Wait, so there's a way to see how much I've saved with my discount total, since the beginning of time? Can someone please direct me there... I'd love to feel that this job is worth it somehow!
 
Joined
Jun 16, 2011
Messages
1,692
Wait, so there's a way to see how much I've saved with my discount total, since the beginning of time? Can someone please direct me there... I'd love to feel that this job is worth it somehow!
Only for the past 12 months. 77 big ones for me, baby!
 
Joined
Jun 7, 2011
Messages
710
117 here.... i dont think i would've spent over a grand at target if i didnt work here. so their 10% was well invested. :D
 

NoRedCards

Soon to be guest, coming 12/21
Joined
Nov 17, 2011
Messages
240
I am at $505 in discounts, most of which I blame on my wife's love of shopping.....
 
Joined
Jun 10, 2011
Messages
244
Even if Target could accurately track whether the employee or domestic partner is making use of the discount (which they cannot unless they start requiring a retinal scan) the annual amount of the discount would have to be pretty subtantial before it would significantly affect your income taxes. And the discount on the Redcards has nothing to do with this. That discount isn't related to our Target employment.
 
Joined
Jan 17, 2012
Messages
218
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  • #18
I can assure you the 10% discount purchases your Domestic Partner makes will be added to the employees income for Imputed Income purposes, but you are right, the extra 5% won't. =)
Even if Target could accurately track whether the employee or domestic partner is making use of the discount (which they cannot unless they start requiring a retinal scan) the annual amount of the discount would have to be pretty subtantial before it would significantly affect your income taxes. And the discount on the Redcards has nothing to do with this. That discount isn't related to our Target employment.
 
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