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Do I Have to Pay Tax on Health Insurance Benefits?

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Q: The amount my employer spends on my health insurance benefits is listed on my W-2 form this year—do I really have to pay income tax on these costs?

A: No, not this year. Those costs are not taxable, and you don’t have to report this figure anywhere on your tax return. The government is requiring employers to report employee health insurance costs on W-2s this year simply because it is trying to gather health-care-cost data as part of the Affordable Care Act.

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Source: Gregg R. Wind, CPA, a partner with Wind & Stern, LLP, an accounting firm based in Los Angeles. He has more than 25 years of experience as a CPA, is former vice-chair of the California Society of Certified Public Accountants and is a former member of the governing council of the American Institute of Certified Public Accountants. www.WSCPAs.com Date: April 1, 2013 Publication: Bottom Line Personal
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