No, you will not be taxed for your employer’s contribution to your health plan
Since the complete fabrication of “death panels” this summer, we’ve seen a continual flow of misinformation and downright lies about what’s in the health reform law. A lie making the email rounds now says that people will have to start paying income taxes on their employer’s contribution to their job-based health insurance. It’s just not true. Here are the facts.
- The health reform law requires employers to include employer-paid health insurance to workers’ W-2 forms for information only. The purpose of this change is to help people get a better understanding of the full cost of their health insurance benefits. Typically, employees pay part of the cost of insurance. On average in Texas, employers cover 68% of premiums for family coverage and employees pick up the other 32%.
- The value of the employer’s health insurance contribution printed on the W-2 will not be counted as taxable income for workers. Health reform does not make you pay income tax on your employer’s contribution toward your health insurance.
Want the complete story? FactCheck.org exposes the truth about this myth.