W-2 Health Insurance Reporting (ASL) - YouTube video text script
Hi. I’m Patrick, and I work for the IRS.
Here’s some important information for you and your employer about your W-2 form.
You know, the form you get at the end of the year that tells you how much you've earned and paid in taxes.
It also shows other things, such as benefits and retirement savings.
Well, you may have heard that the IRS will be requiring employers to report the value of your health insurance coverage on your W-2.
This is true, but here's what's different.
The IRS is making it optional for all employers for 2011.
Then, for at least 2012, it’ll be optional for smaller employers.
That is, those who filed fewer than 250 W-2 forms for 2011.
This will give employers enough time to make changes to their payroll systems.
In other words, the change will happen, just not right away.
In the meantime, here is one thing that hasn't changed.
Whether your employer reports it for this year or down the line, your health benefits are still tax free.
Now, as in the past, your health insurance coverage is excluded from your income and won’t be in the same box as your wages or salary.
Again, you will not be taxed on it.
It’s for information reporting purposes only to show you the value of your health care benefits.
That way, we can all be more informed consumers.
To learn more, go to www.IRS.gov