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.

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Tax Glossary

Premature distributions

Withdrawals before age 59û

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