Obamacare - 1/1/11

[catleg]

I just read that companies will need to report the value of your health insurance for income tax starting next January (presumably tax year 2011, affecting 2012 W-2's). Seems to me that for most tax payers in a ch13 this can potentially represent a tax hit of 100-200-300 a month. I'm wondering if the realization of this has sunk into the ch13 community yet. This plus my NJ property taxes going up 200 a month makes me wonder about trying for a lower plan payment sometime next year.

[NoTomatoCan]

I don't think that is accurate. I know the information will be reported on your W2 but not taxed (yet anyway). In 2018 the "Cadillac" plans will start to be taxed, but this "shouldn't" impact most people.

For what it is worth - Check out Snopes... they have something on this one.

[catleg]

Thanks. That's a big relief.

[walkthaplank]

I am in California, and I may end up being taxed into a CH7 conversion....

Not to delve too far into the politics, I think many of us will be without employer provided benefits before long. Companies that provide benefits are no longer able to write off that expense resulting in huge tax liabilities. It won't take companies long to see that it will be cheaper to pay the fines for no longer providing benefits than it is to keep providing the benefits and eating the tax liability. My company was looking at almost $30 million in liabilities, we aren't a huge company, about 6500 employees, larger companies are getting creamed with tax liabilities.