Is Se Tax Due Upon Health Reimbursment

[dyne]

Is SE tax due upon reimbursement of health insurance premiums or other medical
expenses by a FORMER employer to a retired taxpayer? I contend that it should not
be reported as income but a 1099-MISC is received each year which requires me to
report it as income. This former employer advised that their CPA insisted that a
1099-MISC be issued every year and SE tax must also be paid upon it. I researched
the issue re the SE tax and could find no clear answer. If this is entered in Drake Tax
Software on their 1099-MISC screen as Health Reimbursement, the software does
NOT calculate SE tax on it. I would appreciate comments. If I have posted this
question before, please excuse me.

[ChEAr$]

Go with Drake, cause in your heart you know it's right.

[Burke]

Is SE tax due upon reimbursement of health insurance premiums or other medical
expenses by a FORMER employer to a retired taxpayer? I contend that it should not
be reported as income but a 1099-MISC is received each year which requires me to
report it as income. This former employer advised that their CPA insisted that a
1099-MISC be issued every year and SE tax must also be paid upon it. I researched
the issue re the SE tax and could find no clear answer. If this is entered in Drake Tax
Software on their 1099-MISC screen as Health Reimbursement, the software does
NOT calculate SE tax on it. I would appreciate comments. If I have posted this
question before, please excuse me.

It should only be reported as income if, in fact, the TP had deducted said premiums and/or medical expenses in a previous year. And it would not be subject to SE tax. Now if the employer is continuing to pay this fringe benefit for a retiree, then it MAY be a taxable event, but no SE tax.