ABC Taxes, Tips & Tools

Many peo­ple have heard of one of the pro­vi­sions of the Patient Pro­tec­tion and Afford­able Care Act is that their employ­ers will be report­ing the value of their employer-provided health care cov­er­age on their W-2; that state­ment is true.  Con­gress appar­ently wanted employ­ees to bet­ter appre­ci­ate what their employ­ers spend on them. 

Unfor­tu­nately there is a hoax email float­ing around report­ing that those ben­e­fits will be tax­able ben­e­fits; the email states Kiplinger has writ­ten an arti­cle sup­port­ing this con­clu­sion.  The email con­tin­ues on hys­ter­i­cally about how much their taxes will go up. Folks, I get the Kiplinger let­ter, and they have stated that those health care ben­e­fits reported on W-2s will not be taxed; law­mak­ers def­i­nitely did NOT vote to tax work­ers on their health care coverage. 

The W-2s will report the value of your health care ben­e­fits to you and noth­ing more.  You will not be taxed on those employer-provided health care ben­e­fits (unless you are already being taxed on that income because your plan is not paid pre-tax).  The only thing that will change is you will now know how much your employer chipped in for your health care benefits. 

Thats it; the email is a hoax. 

As always Art and Busi­ness Con­sult­ing is here to help.  If you need help with a small busi­ness and or tax issue, please give us a call.

The usual dis­claimers: Although ABC has made every effort to insure the accu­racy of Taxes, Tips and Tools, mis­in­for­ma­tion, dis­in­for­ma­tion, changes, mis­takes, typos and hack­ers hap­pen, there­fore Art & Busi­ness Con­sult­ing LLC takes no respon­si­bil­ity for any action taken or results based on the infor­ma­tion sup­plied here in. The con­tent of this blog gen­er­ally applies to busi­ness and indi­vid­ual tax­a­tion in the United States of Amer­ica.  Inter­nal Rev­enue Ser­vice Cir­cu­lar 230 Dis­clo­sure:  As pro­vided for in Trea­sury reg­u­la­tions, advice (if any) relat­ing to fed­eral taxes that is con­tained in this com­mu­ni­ca­tion (includ­ing attach­ments) is not intended or writ­ten to be used, and can­not be used for the pur­pose of (1) avoid­ing penal­ties under the Inter­nal Rev­enue Code or (2) pro­mot­ing, mar­ket­ing or rec­om­mend­ing to another party any plan or arrange­ment address herein.  Art & Busi­ness Con­sult­ing LLC cur­rently does not have a cer­ti­fied pub­lic accoun­tant, human resource spe­cial­ist, finan­cial plan advi­sor or an attor­ney on staff; this infor­ma­tion is purely for edu­ca­tional pur­poses and not to be con­strued as legal or finan­cial advice. Art & Busi­ness Con­sult­ing LLC and its employ­ees, mem­bers and asso­ciates are not engage to prac­tice law; you always should dis­cuss legal mat­ters with your attor­ney before talk­ing to any­one else.

This entry was posted on Friday, June 18th, 2010 at 11:46 pm and is filed under General Individual, Individual Taxes, Other Information. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.