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 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’s a redefinition of your taxable income.
Also, go to Kiplinger’s and read about the thirteen (13) tax changes for 2010 that could affect you.
Verification: The Library of Congress (www.thomas.gov)
On that summary page, search for “Title IX: Revenue Provisions – Subtitle A: Revenue Offset Provisions”, Sec. 9002.
Quote:
(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).
How many more surprises are buried deep within the unconstitutional monstrosity falsely labeled ‘health care reform’.
The Hope. The Change.
Note: If the link to thomas.gov fails, you can go to the main page and use the Search by Bill Number for HR3590; then click on CRS Summary
Update and Revision:
… the changes come later and it will tax only the portion over what they consider to be excessive for the cost of health insurance. It is true that the congress has been considering taxing all health insurance benefits, but it has not happened yet.
The bill says that it will tax amounts that “EXCEED $8500 each employee for self only, $23,000 for family plans, and increased amounts for high risk professions and retirees”
Here is the text from the Thomas.gov webiste: (emphasis added) The tax is an excise tax paid by the insurance company, not the employee. Of course they will pass long such costs, just not directly. Also, this takes effect 2018.
“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).”