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Submitted By: James
Answered: March 4, 2014 8:30 am
Answered: March 4, 2014 8:30 am
My W-2 shows employer-paid health insurance. Do I report this as income?
No. The value of employer-paid health insurance for an employee, spouse, and dependent is a tax-free fringe benefit. However, under the Affordable Care Act, employers (other than small employers currently exempt from this obligation) must report health insurance on W-2s. Presumably, this information is being used by the government for rules in the future; there is no current or future rule on the books that taxes this fringe benefit.
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Deductions
Items directly reducing income. Personal deductions such as for mortgage interest, state and local taxes, and charitable contributions are allowed only if deductions are itemized on Schedule A, but deductions such as for alimony, capital losses, moving expenses to a new job location, business losses, student loan interest, and IRA and Keogh deductions are deducted from gross income even if itemized deductions are not claimed.
