Taxing Healh Benefits

This was in an email sent by a friend. I hadn't heard about this.


2011 W-2 Tax Forms


Should you want to verify this, go to LINK /, 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 $7,000.00 or $15,000.00 additional gross income does to your tax debt. My company insurance costs me $900 a year. My company pays $70000 & $8000 a year four my insurance. Assuming just a 10% tax rate it will cost an additional $700 to $800 in new taxes. Do you know what you'll be paying next year. This is not just for the wealthy, this happens to everyone. 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. Does this sound like the cost of health care went down for most Americans to you? This will be a huge tax hike to the people that make under $250,000. The President said he would not raise taxes on those making less than that and yet he signed it into law.

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 you may want to adjust your tax withholding, or increase your savings, or it might actually even be cheaper for you to buy private insurance if you can so that you aren't surprised and put in a jam when your federal income taxes are due on April 15, 2012.