Medical Insurance Contributions to be Recorded on W-2 Forms and Added to Taxpayer’s Income-Fiction!
Summary of eRumor:
This is a forwarded email that says that in 2011 the Employer contributions to healthcare insurance will be recorded on the annual W-2 tax forms and this amount will be tabulated to the taxpayer’s income.
The amount entered for employer contributions to the health insurance plans on the W-2 form are for evidence that the employee has health insurance coverage. This amount will not be taxable nor added to the employee’s gross income.
In an April 5, 2010 article called “Health Care Reform: 13 Tax Changes on the Way”, Senior Tax Editor, Joan Pryde of the Washington D.C. based Kiplinger Letters wrote about a “requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011. The amount reported is not considered taxable income.”
The text to Patient Protection and Affordable Care Act HR-3590 can be viewed on the Thomas Library site: Click for HR-3590
There are various eRumors about HR-3590 and our findings can be found by clicking here.
Reading the information below is unbelievable! Very important you read it as well so you can adjust your deductions NOW!!!
2011 W-2 Tax Forms–Surprise, surprise!
If this doesn’t get to you, then check your pulse. You may be a flatline…
Should you want to verify this, go to http://www.thomas.gov/, enter “HR 3590”
in the search box and look for “CRS Summaries” (near the bottom of the page.) 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.
Why am I sending you this? The same reason I hope you forward this to every single person in your address book. People have the right to know the truth because an election is coming in November. So vote intelligently, based on your values.
But also adjust your tax withholding, or increase your savings, so that you aren’t surprised and put in a jam when your federal income taxes are due on April 15, 2012.
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