Health Insurance Taxation Myth
This myth is circulating the internet and email, and I just want to clarify the truth. The myth is that the value of your health insurance will be added to your W-2 starting in 2011 and therefore your taxable income will increase by the same amount. The truth is that the value of your health insurance will need to be printed for informational purposes on your W-2 starting in 2011, but will NOT be added to your taxable income and you will NOT owe taxes on the value of your health insurance as long as your company maintains a pre-tax health plan (which most do!)
