Submitted By: James
Answered: March 4, 2014 8:30 am

My W-2 shows employer-paid health insurance. Do I report this as income?

No. The value of employer-paid health insurance for an employee, spouse, and dependent is a tax-free fringe benefit. However, under the Affordable Care Act, employers (other than small employers currently exempt from this obligation) must report health insurance on W-2s. Presumably, this information is being used by the government for rules in the future; there is no current or future rule on the books that taxes this fringe benefit.

advertisement
Tax Glossary

Real property

Land and the buildings on land. Buildings are depreciable.

More terms