Have you received an email warning that your health insurance premiums will be taxed starting in 2011 as result of the recently passed health care reform legislation? A concerned employee recently asked me about this. Fortunately, this is another bit of misinformation being distributed to attack reform. The Affordable Health Care Act does require employers to list the cost of employer-provided health insurance on each employee's W-2 Form; however, the cost is not taxed.
Perhaps as a result of this spreading misinformation, the IRS posted the following explanation on its website:
"Employer-Provided Health Coverage — Not Taxable
Starting in tax year 2011, the Affordable Care Act requires employers to report the value of the health insurance coverage they provide employees on each employee's annual Form W-2. This reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers. The amount reported does not affect tax liability, as the value of the employer contribution to health coverage continues to be excludible from an employee's income and it is not taxable."
The moral is: don't believe everything you read, folks!
No comments:
Post a Comment