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Health Insurance on W-2 - YouTube video text script

HI… I’M THERESA… AND I WORK FOR THE INTERNAL REVENUE SERVICE.

YOU MAY SEE A NEW NUMBER ON YOUR FORM W-2. YOU KNOW… THE FORM YOU GET AFTER THE END OF THE YEAR… THAT TELLS YOU HOW MUCH YOU’VE EARNED AND HOW MUCH TAX YOU HAD WITHHELD FROM YOUR PAYCHECK.

THAT NEW NUMBER IS FOR THE COST OF EMPLOYER-PROVIDED HEALTH CARE COVERAGE.

YOU’LL FIND IT ON YOUR W-2 IN BOX 12… UNDER CODE D-D.  ANY AMOUNT YOU SEE UNDER THIS SPECIAL CODE IS NOT TAXABLE.

AS MORE AND MORE EMPLOYERS START REPORTING THIS COST ON FORM W-2… WE WANT TO MAKE SURE YOU KNOW THAT ALTHOUGH INCLUDING THIS INFORMATION ON YOUR W-2 IS NEW… OTHER THINGS ARE STILL THE SAME.

IN OTHER WORDS… HEALTH COVERAGE THAT WAS TAX-FREE IN THE PAST IS STILL TAX-FREE NOW.            

SO… YOU MAY BE WONDERING… THEN WHY IS THIS NUMBER ON MY W-2?

WELL… IT’S THERE FOR INFORMATIONAL PURPOSES TO SHOW EMPLOYEES THE VALUE OF THEIR HEALTH CARE BENEFITS.        

NOT EVERYONE WILL HAVE THIS AMOUNT ON THEIR W-2 RIGHT AWAY BECAUSE THIS REPORTING REQUIREMENT IS STILL OPTIONAL FOR MANY SMALLER EMPLOYERS.  

BUT IF IT IS ON YOUR W-2… REMEMBER… THE BOTTOM LINE IS THE AMOUNT REPORTED WITH CODE DD IS NOT TAXABLE.

TO LEARN MORE …GO TO I-R-S-DOT-GOV.

Page Last Reviewed or Updated: 05-Feb-2014