Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-29-2015, 12:00 PM
Junior Member
 
Join Date: Apr 2015
Posts: 2
C Corp Employee Health Insurance

I am an employee of a C-Corp with no ownership or officer status. My employer is not required under the Affordable Care Act to provide Health Insurance through an employer based plan as he has fewer than 50 employees.(only 10 employees total) My employer offered health insurance payments to all employees in 2014 per the company handbook. The health insurance policy, in my name was paid directly by my employer to the health insurance provider Blue Cross/Blue Shield. This is a qualifying policy as per ACA.
Our tax accountant has put the amount my employer paid for my health insurance policy on my wages for 2014 in line 1 as taxable income. Everything I have found online and from local CPA's has said this is not correct. Can you advise on this?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-29-2015, 03:45 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by SFisher View Post
Our tax accountant has put the amount my employer paid for my health insurance policy on my wages for 2014 in line 1 as taxable income. Everything I have found online and from local CPA's has said this is not correct. Can you advise on this?
employer-paid health insurance is treated as tax-free income to employees no matter how premium the plan is. Though the amount is included on your earnings statement, it is still not considered income. The amount listed is for your own personal information.The value of health care coverage provided by your employer is now reported in Box 12 on your W2 with Code DD to identify the amount. The amount reported in the box should include both the portion paid by your employer and you. Under the ACA , most employers must now report the cost of your health care plan ;a few small businesses are still exempt from reporting under the transitional relief offered by IRS. So, the premiums that your employer pays on your behalf, while saving you money, are not considered income. You do not have to report any employer-paid premiums for you, your spouse and dependents on your taxes. This extends to whether the premiums paid were for group insurance or an individual policy or were paid when you were laid off.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-29-2015, 06:37 PM
Junior Member
 
Join Date: Apr 2015
Posts: 2
Is there somewhere this is specifically addressed so I can show the tax accountant?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 04-29-2015, 07:31 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by SFisher View Post
Is there somewhere this is specifically addressed so I can show the tax accountant?
Affordable Care Act Tax Provisions



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
deducting health insurance premiums -- s corp in NYC overnite S-Corporation 0 03-17-2014 09:45 PM
What is the "Minimum Essential Coverage required by a Health Plan" by taxpayers in order to avoid incurring the Health Insurance penalty? TaxGuru Medical 0 02-03-2014 02:32 PM
Starting in 2014, Taxpayers may be eligible for the Premium Tax Credit if they purchase health insurance through the Health Insurance Market Place TaxGuru General 0 11-06-2013 03:27 PM
health insurance sportmommy3 C-Corporation 0 12-22-2010 10:30 AM
Health Insurance/Medical Expenses for C-Corp doctor_323 C-Corporation 1 11-08-2010 08:37 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.