2011 W-2 Tax Forms and Obamacare

[texas1willy2]

" 2011 W-2 Tax Forms and Obamacare

Should you want to verify this, go to THOMAS (Library of Congress), 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 the 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 (redistribution) of your taxable income.

Also, go to Kiplinger's and read about the thirteen (13) tax changes for 2010 that could affect you.

 

[cuate]

God willing, the rotten majorities in both houses will be replaced and sent packing and the job of nullifying and removing the garbage passed since Jan 30th 2009 willo be in work with a passion. Then changes demanded as to term limits, cancelling voting their own pay raises and retirement and that they use the sane health care as plain American Citizens !

 

[Fisherman777]

Sane health care would be no government involvement at all. None.

 

[jasont]

http://www.kiplinger.com/businessre.../health-care-reform-tax-hikes-on-the-way.htmlI went to the site the OP suggested and it specifically said this was non-taxable income.

3. A requirement that businesses include the value of the health care benefits they provide to employees on W-2s, beginning with W-2s for 2011. The amount reported is not considered taxable income.

http://www.kiplinger.com/businessre.../health-care-reform-tax-hikes-on-the-way.html

 

[SiscoKid]

All I know so far is my GREAT doctor has retired early and I now have a Foreign Woman as my primary doctor.

 

[texas1willy2]

This is what I read, I don't see where it says anything about being untaxed.


Title IX: Revenue Provisions - Subtitle A: Revenue Offset Provisions - (Sec. 9001, as modified by section 10901) Amends the Internal Revenue Code to impose an excise tax of 40% of the excess benefit from certain high cost employer-sponsored health coverage. Deems any amount which exceeds payment of $8,500 for an employee self-only coverage plan and $23,000 for employees with other than self-only coverage (family plans) as an excess benefit. Increases such amounts for certain retirees and employees who are engaged in high-risk professions (e.g., law enforcement officers, emergency medical first responders, or longshore workers). Imposes a penalty on employers and coverage providers for failure to calculate the proper amount of an excess benefit.

(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).

 

[jasont]

The Title IX : Revenue Provisions Sec 9001 part goes into effect in 2018. That will be a tax of 40% of the amount over the maximum on the "high cost" health care plans.

2018
Excise tax on high cost employer-provided health plans becomes effective. Tax is on the cost of coverage in excess of $27,500 (family coverage) and $10,200 (single coverage), increased to $30,950 (family) and $11,850 (single) for retirees and employees in high risk professions. The dollar thresholds are indexed with inflation, and employers with higher costs on account of the age or gender demographics of their employees may value their coverage using the age and gender demographics of a national risk pool.

http://docs.house.gov/energycommerce/TIMELINE.pdf

Sec. 9002 just requires the reporting of these health plans in 2011 but does not specify any taxes. It's just for gathering information for the 2018 tax.

Any new taxes suck but its still a ways off before it goes into effect and there is time to change it. There will be several elections before that happens. Also it is not on all health insurance benefits, just those over that amount which is quite high. I've got pretty decent insurance benefits through my company and it is nowhere near that high.