April L asked:
My husbands employer has taken his insurance premiuns out of his gross income which has made his gross income lower.
Actually his premium was taken out pre tax. Now on his w-2 it doesnt show up at all as if he never earned it.
automobile insurance
My husbands employer has taken his insurance premiuns out of his gross income which has made his gross income lower.
Actually his premium was taken out pre tax. Now on his w-2 it doesnt show up at all as if he never earned it.
automobile insurance
Tags: Gross Income, Health Insurance, Health Insurance Premiums, Insurance
February 17th, 2009 |
Tags: Gross Income, Health Insurance, Health Insurance Premiums, Insurance
February 18th, 2009 at 1:19 pm
yes meaning you did not have them taken out pretax
also since it was done this way you may be able to deduct the cost of the premiums and any other copayments or prescriptions on your Schedule A if you itemize
February 21st, 2009 at 11:38 am
There is nothing improper about an employer deducting health insurance premiums out of ones gross income.
However, when that happens you’ve already seen a “tax benefit” through the lower income on your Form 1040. DO NOT include in your medical and dental expenses on Schedule A any insurance premiums paid by an employer-sponsored health plan unless the premiums are included in box 1 of his W-2. Also, DO NOT include on Schedule A any other medical/dental expenses paid by the plan unless the amt paid is included in box 1 of the W-2. You can’t have it deducted from gross AND taken as an itemized ded or the IRS will reject the deduction.