Sunday, April 8, 2012

Is health insurance held out of paycheck taxable

Is health insurance held out of paycheck taxable?
I am still waiting on my W2's but was looking at my year end pay-stubs. I have 2 of them.

They both have health insurance held out but one of them says YTD gross and under that says total current taxable wages which has my health insurance subtracted from the gross amount. The second paycheck only has gross amount. So what would be the right amount?
United States - 2 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Depends upon whether or not the health insurance was part of a Section 125 benefits plan. Most are but not all are. Your W-2s will reflect the correct amounts; you must wait for them before you can file.
2 :
You do not pay taxes on the health insurance if it was paid with pretax dollars. It sounds like this is what your w2 is saying. Christine This advice was prepared based on our understanding of the tax law in effect at the time it was written as sit applies to the facts that you have provided. http://www.hrblock.com/taxes/tax_tips/index.html http://www.hrblock.com/taxes/tax_calculators/index.html

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