March 19, 2013
NOTE: Each month, NARFE magazine publishes a wide range of Questions & Answers from members. Don’t miss an issue. Keep your membership current!
 
 
Feds Taxed Under New  Health Care Law?
 
 

QUESTIONI heard that the new health care law requires all federal employees to pay income tax on the government-paid portion of our health care plan’s cost. Is this true?

ANSWERWhat is true is that, beginning in 2018, a 40 percent tax will be levied annually on the health insurance carrier for plans that cost more than $10,200 per individual or $27,500 per family. The tax will be on any coverage that exceeds the limit. Those figures will be based on the combined contributions of enrollees and the government. To get you accustomed to what those total costs are, beginning in 2011, they will be included on W-2 forms for employees and 1099-R forms for retirees.

National Active and Retired

FEDERAL EMPLOYEES Association

NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.

March 19, 2013
NOTE: Each month, NARFE magazine publishes a wide range of Questions & Answers from members. Don’t miss an issue. Keep your membership current!
 
 
Feds Taxed Under New  Health Care Law?
 
 

QUESTIONI heard that the new health care law requires all federal employees to pay income tax on the government-paid portion of our health care plan’s cost. Is this true?

ANSWERWhat is true is that, beginning in 2018, a 40 percent tax will be levied annually on the health insurance carrier for plans that cost more than $10,200 per individual or $27,500 per family. The tax will be on any coverage that exceeds the limit. Those figures will be based on the combined contributions of enrollees and the government. To get you accustomed to what those total costs are, beginning in 2011, they will be included on W-2 forms for employees and 1099-R forms for retirees.



JOIN NOW!


Renew now!



NARFE (National Active and Retired Federal Employees Association) 606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

 

This is the only website that reflects the official opinions and positions of the National Active and Retired Federal Employees Association (NARFE). Opinions and/or positions that appear on any other site bearing NARFE's name or seal are not necessarily those of NARFE. Click here for Privacy Statement.   NARFE has been certified by Dun & Bradstreet.