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To: Chairman_December_19th_Society

As the disgraced Alcee Hastings said, they realy are making up the rules as they go along!


204 posted on 03/25/2010 9:32:15 AM PDT by Chairman_December_19th_Society (1/20/2013 - End of an Error!)
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To: All
IMPORTANT - Potential hidden tax implication to the 26-year-old coverage rule!

File this under You knew they were going to screw you!

From Hugh Hewitt's blog:

I've heard you talking about one of the "benefits" of Obamacare being the ability to add dependents to insurance until they are 26 years old. This has been the law in Illinois since June 2009. There is a catch to this. If the dependent you are adding doesn't qualify as an "IRS qualified dependent" this is considered a taxable benefit for the individual that owns the insurance. So, for those employees who fall into this category, each payday, we have to add imputed income to their payroll that equals the monetary value of the insurance. The recommended imputed income amount is equal to the full cost of individual coverage. That means we add that dollar amount (for us it's about $500) to the employee's payroll, taxes are calculated and withheld, and the $500 is then removed from the employee's payroll. Bottom line is the IRS, State, Social Security and Medicare all receive taxes on the value of the insurance benefit. Bittersweet deal.

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Yep, probably right. There are going to be a whole bevy of Americans that are going to come to understand "imputed income".

205 posted on 03/25/2010 9:45:18 AM PDT by Chairman_December_19th_Society (1/20/2013 - End of an Error!)
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