Is an employer sponsored health plan pre taxed to the employee?

[AZ-Tax]

Looked at clients W-2 Box 1, 3 & 5 have all the exact amts. Client told me she was told that her health premiums were pre taxed. Now she emailed me and told me the employers accountant told her "He said my W-2 is correct and if the health insurance premiums were shown on the W-2 they would be taxed".

1st, why would the accountant use the word "if". He or she admitted preparing the W-2. I am beginning to think the group health premiums are separated out from the payroll some how and the premiums maybe post tax.

If post taxed, employee paid 100% and yet the employee is NOT self employed, can the TP deduct the premiums as a medical expense on Sch A?

[Koss]

Pre-tax insurance premiums

Group health insurance premiums, whether they are pre-tax or post-tax, generally will not appear on Form W-2 at all.

If they are post-tax, then, yes, it becomes deductible on Schedule A for the employee. If they are post-tax, the employer may put the amount in Box 14, for informational purposes only, kind of like union dues. The employee, or the employee's tax pro, still has to figure out what the amount represents, and what to do with it, if anything.

If the premiums are pre-tax, they will not appear anywhere on Form W-2, either.

The employer's accountant was probably exasperated, after getting a million questions like this from employees of his clients. He was probably trying to say something like, "well, sure, we could put your insurance premiums on Form W-2, if you really want, but then it would become taxable income to you. Is that really what you want?"

MY point is that whether the premiums are pre- or post-tax, Box 1, Box 3 and Box 5 will be the same. It's not like a 401(k) contribution, where you see a difference. If it's pre-tax, it's free from federal income tax, social security and medicare. If it's post-tax, it subject to federal income tax, social security and medicare. So you won't see a difference between those amounts.

BMK

[AZ-Tax]

Employee pays the premium, why tax?

The employer's account was probably exasperated, after getting a million questions like this from employees of his clients. He was probably trying to say something like, "well, sure, we could put your insurance premiums on Form W-2, if you really want, but then it would become taxable income to you. Is that really what you want?" MK

The employee paid their entire premium. Cant really tax that but could be deductible on Sch A, correct?

[Burke]

Health insurance premiums paid by an employee by separate check or post-tax deductions on their paystub are deductible on Sche A as a medical expense. Ask for a paystub to determine this is the case. (Sometimes you cannot even tell then -- you have to ask the employer).