SunTaxMan Posted January 29, 2012 Report Share Posted January 29, 2012 For tax year 2010, 2% Shareholder Health Insurance had to be added to taxable wages (for income tax) on W-2. For tax year 2011, did this change? I am not seeing references to this, but don't remember seeing anything about a change. Should Health ins be added to wages for 2011? Thanks, Quote Link to comment Share on other sites More sharing options...
jklcpa Posted January 29, 2012 Report Share Posted January 29, 2012 No rule change on that for 2011. It should be included in the W-2. Quote Link to comment Share on other sites More sharing options...
Randall Posted January 30, 2012 Report Share Posted January 30, 2012 No change. But remember it does not go in the SocSec and Medicare wages. And on the 1040, the deduction is limited to the amount of Medicare wages (same for retirement account eligibility). So if wages are low and ins is high, there may be a lower deduction on 1040 than the income added thru W2. Quote Link to comment Share on other sites More sharing options...
jetaxes Posted January 30, 2012 Report Share Posted January 30, 2012 Also on the W-2 in Box 14 I put 2% MED 3333.00. i have been doing this for 3 years. Joan Quote Link to comment Share on other sites More sharing options...
SunTaxMan Posted January 30, 2012 Author Report Share Posted January 30, 2012 jetaxes. I understand the entry in Box 14 is not REQUIRED, but a convenience for the employee. Correct? Quote Link to comment Share on other sites More sharing options...
jetaxes Posted January 31, 2012 Report Share Posted January 31, 2012 I cannot remember where I got the info to put it in Box 14!! But I do know it is a good reminder for a tax preparer to take it is a deduction on Sch A if they can Itemized Deduction. I don't believe I got info from IRS! Quote Link to comment Share on other sites More sharing options...
Randall Posted January 31, 2012 Report Share Posted January 31, 2012 I put it in box 14 to show the difference between box 1 and boxes 3 & 5. Quote Link to comment Share on other sites More sharing options...
jetaxes Posted January 31, 2012 Report Share Posted January 31, 2012 Yes Randall, that is the figure I used too. Joane Quote Link to comment Share on other sites More sharing options...
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