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Submitted By: someone
Answered: July 22, 2019 3:14 am
Answered: July 22, 2019 3:14 am
I received $1,000 from my employer in lieu of taking company health coverage. Since this was not for work performed, do I have to report this as income?
Yes. There is no exclusion from income for the payment from an employer to an employee who opts not to take company health coverage. This is so even though you would not have been taxed on the health insurance if you’d opted for it instead of the cash payment.
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Tax Glossary
Tax deferral
Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.
