Should you want to verify this, go to 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.
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.
Good one to distribute widely, IMO. People need to know all of these details of what the big "O" hath wrought.
Fight organized crime! Re-elect no one.
Alias Barack Obama: a lie is born: The greatest identity fraud in history Paperback – July 10, 2012
2 comments:
Calm down, first of all, and read the document. It states very clearly that the dollar amount of the health insurance will be reported on your W-2 and be EXCLUDABLE from income. Currently, there are 5 boxes on the W-2 which relate to income--Box 1, which is federal taxable income; Box 3, which is Social Security taxable income; Box 5, which is Medicare taxable income, Box 15, which is state taxable income, and Box 18, which is local and/or city taxable income. So, as you can see to be included in income on your W-2, one must define income. For tax purposes, you are only concerned with Box 1 and Box 15 for the most part.
Now, there are other boxes on the W-2 which give additional information about fringe benefits. Box 12 (which has 3 line in the standard W-2) is used to report certain employer provided retirement plans, dependent care benefits, moving benefits paid by an employer, and so on. There were 28 different items which could be in Box 12. They all have a commonality in that they are excludable i.e., not taxable under certain conditions, to the employee.
Next, there is Box 14-Other. You've got to love that title. These boxes are used to tell the W-2 recipient certain other information. There are about 2 pages of possibilities of items to be recorded here. I mostly see it being used for union dues, employer provided traveling expenses, and government provided retirement benefits (which don't meet the requirements to be included in Box 12)
Where will the medical insurance be listed? Right now the 2010 W-2 format has not been released. The best guess of tax professionals is that it will be another Box 12 item--information which relates to your income but is not taxable. In the testimony before the bill was passed, it was stated that no one really knows what the dollar equivalent is form employer provided health insurance. The new reporting will provide the statistical data necessary to calculate what the dollar value is.
Personally, I think a lot of people will be shocked to find out what their health insurance is worth. Somehow, people think the premiums are about $250 per month and why can't everybody just pay for their own health insurance. I am self employed and I pay $900 per month for a decent medical insurance plan but there is no dental or eye coverage. Either would put the coverage at over $1,200 per month which is more than I am willing to pay.
There is a lot of misinformation out there. The beginnings of this email is a case in point. One word--excludable--was overlooked. This is how the rumor mongers in the system are able to exist. They spread bad information to people, most of whom are well meaning but don't understand the nuances of the system. The worst think someone ever said was, "I heard it on TV and must be true as they wouldn't allow lies on TV." Well, folks, guess what? People do lie on TV and they do it on purpose.
So, my final advice, check to see what your employer is paying for you on your W-2. You will probably be surprised. For most, this benefit is tax free and costs you small copay and deductable. Think what it would mean to your family if you suddenly had to pay 100% of that amount out of pocket. For now, your health insurance is not taxable. All I can say is what I know now. As long as Congress is in session, they have the power to change things.
Mary L. Partridge, CPA
I showed your response to the person who sent me this information and here's his response: "Either way-- You're screwed!"
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