2011 W-2 to tax Health Care Insurance costs?
An interesting e-mail is floating around the internet claiming that, "Starting in 2011-next year-the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided. It doesn't matter if you're retired. Your gross income WILL go up by the amount of insurance your employer paid for."
The St. Petersburg Times reports that the chain e-mail is correct that employers will be required to start listing the cost of insurance, but that will be for tax year 2011, and won't be reflected until 2012.
The Times also states that the amount will not be taxed due to current law excluding health insurance as taxable income, and that there is nothing in the new health care law that changes that.
Note: that's current law.
Click here for the rest of the article.
An interesting e-mail is floating around the internet claiming that, "Starting in 2011-next year-the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided. It doesn't matter if you're retired. Your gross income WILL go up by the amount of insurance your employer paid for."
The St. Petersburg Times reports that the chain e-mail is correct that employers will be required to start listing the cost of insurance, but that will be for tax year 2011, and won't be reflected until 2012.
The Times also states that the amount will not be taxed due to current law excluding health insurance as taxable income, and that there is nothing in the new health care law that changes that.
Note: that's current law.
Click here for the rest of the article.
posted by Kevin Whiteman at
5:29 AM
4 Comments:
Although I live in Canada and not the US, I am familiar with medical benefits being considered taxable income when paid by the employer. Not sure if that's exactly what you are referring to, but my employer, the Province of BC, pays my medical benefits for my family and it is a taxable benefit, though I don't pay the actual cost of the medical insurance.
If they are following the Canadian system then employer health care will not be added to your gross income. But who knows what the big 'Orrifice" is up to
as an addendum i live in ontario, each province does have certain differences in such matters.
as an addendum i am in ontario
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