taxation

Van2May 5, 2013

My health insurance premiums are deducted from my pay. My employer pays nothing. Is it legal for the employer to tax these premiums?

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Karolina11

If I am understanding correctly then yes, they are still considered income and thus taxable. Your employer isn't taxing it, the government is. In the government's eyes you are receiving let's say $1500 and paying $200 of that (or whatever the amount is) toward health insurance. You will still be taxed on the $1500.

    Bookmark   May 5, 2013 at 8:48PM
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jannie

Health Insurance is part of what your employer provides you.,so it's considered "earned" and taxable income.If your employer gives you a bonus,you pay taxes on it,right?

This post was edited by jannie on Mon, May 6, 13 at 9:00

    Bookmark   May 6, 2013 at 8:58AM
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sushipup1

Actually, health insurance premiums thru a group plan are paid with pre-tax dollars. Are you sure that the employer is taxing that portion of your pay? If you work for a small company, perhaps they need to be informed of that part of tax law. Most major companies use payroll specialists, tho.

It might not be clear on your paycheck stub, so be sure to ask the people in charge of payroll.

    Bookmark   May 6, 2013 at 10:18AM
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Karolina11

Not necessarily, often smaller corporations do not have a section 125 (which is what it sounds like here as they are not contributing and thus minimizing administrative cost) and thus premiums could be post tax. In that case, you may you be able to take some of the cost as a tax deduction at the end of the year.

    Bookmark   May 6, 2013 at 5:48PM
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jannie

Yes, you can deduct insurance premiums as part of your medical expenses if you itemize on your tax return.

    Bookmark   May 8, 2013 at 8:06AM
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joyfulguy

Is that entirely a Federal deal, or are there variations from state to state?

ole (furriner) joyful

    Bookmark   January 30, 2014 at 7:42PM
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