Are amounts a registered domestic partner receives for education expenses that cannot be excluded from the partner’s gross income (includible education benefits) considered to be community income?

Yes, amounts a registered domestic partner receives for education expenses that cannot be excluded from the partner’s gross income (includible education benefits) are considered to be community income if they are classified as such under state law.

For federal income tax purposes, whether includible education benefits are considered community income depends on the state law governing community property. If the state law deems these benefits as community income, then they are treated as community income for federal tax purposes. Conversely, if the state law does not classify these benefits as community income, they are not considered community income for federal tax purposes.

This principle is consistent with the general rule that state law determines the nature of income as community or separate, which is then applied for federal tax purposes.

Sources:
Publication 555 (3/2020)
Publication 15-A (2024)
Rev. Rul. 2013-17
PLR 9431017