Dems Health Care Law-you will be taxed on your premiums

[newtoli]

Originally Posted by Toyman at Jewel Lake

OK, I'm still confused. A 1099 is typically a way of reporting business income, which in turn is taxed. I wasn't aware that there was such a thing as an "information only" 1099.

There are multiple different types of 1099 forms for multiple purposes.

[HappyTexan]

Originally Posted by newtoli

Not calling anyone a liar, OP is simply mistaken. Please do your research. The dollar amount is reported on the W2 for informational purposes only. You will not be taxed on that dollar amount.

It may serve as the basis for the cadillac tax which doesn't happen for a few more years. That is my opinion..not something I've read anywhere.

[newtoli]

Originally Posted by HappyTexan

It may serve as the basis for the cadillac tax which doesn't happen for a few more years. That is my opinion..not something I've read anywhere.

Yes, everyone will have that information reported on their W-2, and it will be used to verify coverage and whether or not you are in a Cadilliac plain (2018) as well.

You will not be taxed on the dollar amount of your health care premiums listed on your W-2, as stated in OP.

[Gary Siete]

Originally Posted by HappyTexan

I found this:

Tax Provisions in the Health Care Act

Information Reporting
The act requires employers to disclose on each employee’s annual Form W-2 the value of the employee’s health insurance coverage sponsored by the employer, effective for tax years beginning after Dec. 31, 2010.

The act requires businesses to file an information return (e.g., a Form 1099) for all payments aggregating $600 or more in a calendar year to a single payee, including corporations (other than a payee that is a tax-exempt corporation). The provision is effective for payments made after Dec. 31, 2011.

A 1099 is used by employers to record payments to freelancers/independent contractors. Employers use it to document their expenses and contractors use it to declare income. It has nothing to do with healthcare per se (freelancers don't get employer healthcare) except to document income -as it does now. There is nothing new in the healthcare act regarding 1099's.