Discussion:Nontaxable health ins benefits

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Discussion Forum Index --> Tax Questions --> Nontaxable health ins benefits


Theresa d (talk|edits) said:

27 January 2007
a client included in her medical expenses the amount of health insurance paid. i'm not sure if she paid this on a pre tax basis under a section 125 plan-in which case it would not be deductible-right? she does't understand what i am asking her. however on her w-2 it indicates in box 14 b an amount for non taxable health benefits. i'm thinking these may be the insurance premiums she paid. am i on the right track?

Solomon (talk|edits) said:

27 January 2007
Think so.

Deback (talk|edits) said:

January 27, 2007
1st question - correct, not deductible.

2nd question - If you can get her last check stub, you might be able to determine if the health insurance premiums are pre-taxed by comparing the gross wages with the check stub and the W-2. Sometimes, employers will incorrectly include the amount in box 14, and it's not always possible to tell if the premiums are pre-taxed.

Deback (talk|edits) said:

January 27, 2007
The more I think about this, larger employers who treat health ins premiums as pre-tax usually don't list the amount in box 14. I would tend to think this is the amount she actually paid out of her taxable wages shown in box 1, especially if the company is a small employer.

Solomon (talk|edits) said:

27 January 2007
The ones I had show Sec. 125 with the amount in Box 14.

Deback (talk|edits) said:

January 27, 2007
Ah, right, Solomon. I have some like that--that specify Sec. 125 in box 14, especially the smaller companies. The larger companies in Michigan don't list the amount in box 14.

Dennis (talk|edits) said:

27 January 2007
NYC taxes 125 benefits. All NY w-2's have entry.

Theresa d (talk|edits) said:

27 January 2007
She works for a large corp- it's listed in box 14 as non taxable health benefits-i'm thinking this must be the sec 125 health insurance she pays. thanks for the imput. will try to get her pay stub as Deback suggest.

Lindasj (talk|edits) said:

28 January 2007
The one I am dealing with has a SC125M in box 14 and it is different pre-tax Health Plans and Fringe Benefits. But im not sure what this info goes under on his taxes. Shouldnt this be taxed in someway?

Sandysea (talk|edits) said:

28 January 2007
Lind...yours sounds very much like pre tax insurance payments....Since they are health plans and fringe benefits, I think this is what they are...so no double dipping so to speak. The other 125 benefits that may be put in box 14 above could be cafeteria plan medical reimbursements....hard to say unless you check with the owner of the w-2.

Clint (talk|edits) said:

10 February 2007
In Box 14 of the W-2, Has anybody out there seen the term MERP ?? Know what it means?? or how it is handled.nnnnn

Ztom (talk|edits) said:

10 February 2007
If box 14 is coded v it is pretax health ins.

Dan's Tax Service (talk|edits) said:

15 February 2007
Related situation: Client paid/reimbursed employer $3540 through payroll deductions for health insurance coverage. (Substantiated by last pay stub) Same amount is deferred from taxable income in block 1 of the W2. However, the W2 has no entry in block 14 or elsewhere for the amount deferred.

Can the $3540 be claimed as health insurance premiums on Sch A?

Deback (talk|edits) said:

February 15, 2007
No. Most of the time, the pretax health insurance premiums are not listed on the W-2. Some employers do list them, but most don't. They're still pretaxed premiums, so they can't be deducted whether they are on the W-2 or not.

Opieduct (talk|edits) said:

19 March 2007
My W-2 form has HTH ($ amt) on box 14. Is this deducted?

Luukay (talk|edits) said:

14 February 2008
I have a W-2 that shows in Blk 1 47968.04 and in Blk 3 and 5 shows 50423.67....Blk 12D shows 2455.63, so I'm thinking this is pre-taxed health premiums...??

Natalie (talk|edits) said:

February 15, 2008
Code D = 401(k) or other elective deferrals.

Luukay (talk|edits) said:

6 March 2008
Yes,401(k). Have W-2 and earnings summary which shows: Gross Pay 36156.50, then has fed tax, medicare, State, social sec. withholding. Then, says "Less other Cafe 125 ....$655.36, then shows reported W-2 wages of 35,501.14. Now here's the question: On the W-2, shows block 1, 3, 5, $35,501.14. Then in Blk 13 has Ret Plan checked. I'm confused here. There is no code shown anywhere on the W-2. Can you tell me what this means? Thanks so much.

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