Employer-sponsored group health coverage that is excludable from the employee's gross income.

Bosses E mail | unknown

[Captain PJ]

Just a little bit more taxes please. Should you want to verify this, go to http://www.thomas.gov/, enter "HR 3590" in the search box and look for "CRS Summaries." This is what you'll find.

Title IX Revenue Provisions—Subtitle A: Revenue Offset "(Sec. 9002) Requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee's gross income (excluding the value of contributions to flexible spending arrangements)."

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. So you’ll be required to pay taxes on a larger sum of money that you actually received. Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That's what you'll pay next year. For many it puts you into a much higher bracket. This is how the government is going to buy insurance for fifteen (15) percent that don't have insurance and it's only part of the tax increases, but it's not really a "tax increase" as such, it a redefinition of your taxable income.

Also, go to Kiplinger's and read about the thirteen (13) tax changes for 2010 that could affect you.

[FReepaholic]

A medical insurance consultant for our company told us about this last week when asked how Obamacare would really affect us.

She also said flat out that the whole thing was designed to fail and was supposed to lead to a single-payer system.

[Michael Barnes]

I honestly don’t know if its wiser to save up and pay down my debt now, or go hog wild and wait for the full blown crash of 2011.

[KarlInOhio]

This doesn't change the fact that these insurance costs are excluded from the "gross" income without further legislation. I think it is the first step to taxing "Cadillac" plans because the individual employee's insurance benefit must be tracked to see whether the excess amount is taxable.

[nina0113]

I know we’re totally effed, but I’m kinda looking forward to the howls of outrage from my liberal co-workers who think Obamacare is just dandy.

[newbolt]

As I understand it, we will have to report the value of company paid health insurance on each employee’s W-2 but this is reporting only. No additional tax will be incurred by the employee.

[ASOC]

You forgot to add “as yet”

[AppyPappy]

I wouldn’t base decisions on a forwarded email

[devere]

“You forgot to add “as yet””

He was a lot more accurate than the original post.

[Fido969]

group health coverage that is excludable from the employee's gross income

How could it be both excludable and included?

I think they want to tax it in the future, but this law doesn't seem to include it in gross income. I think you're nuts.

[Emile]

It is my understanding also that, as of now, this is an info reporting requirement only. It’ll probably be used to let Congress know just how much tax money they could soak the middle class for if they later tax the value of the benefits.

[newbolt]

You’re right. No tax ‘as yet”. And I agree, certainly no guarantee about the future.

[Sacajaweau]

We’ll always get sc*****. I remember when the interest on my VISA was deductible.

[FreedomNotSafety]

I know this is a prelude to taxing it but in the meantime it may be beneficial. Why? Now many more people will understand just how outrageous health care insurance has become. Plus people will understand that they actually earn more than they may realize. I am thinking especially of lower paid workers who receive company paid insurance. I know many people who make @12-20/hr and receive “free” health insurance worth $3-7/hr but think that somehow it is not part of their earnings. This leads them to believe they are underpaid.

While we are at it let's make sure all of the other “free” items are on the W-2 as well such as the “employer match” for SS, unemployment insurance, etc..

Oh yeah, and if I have to report every $600 transaction for my business then all levels of government should send me a report of everything they receive from me. Can you imagine what would happen if everyone could see all the taxes their employer pays on their behalf (which means they earned it even if they didn't see it) all of the taxes they paid on everything else?