Deduction for health insurance premiums

[Clemrick]

Tax Book p.4-6 says employer sponsored health insurance premiums can be deducted if they are included in Box 1. Which is shown if boxes 1,3, and 5 are the same amount, right?

If so, is there any adjustment to be made if the premium includes insurance for the taxpayer and children that are being claimed by an ex-spouse? Or can the taxpayer deduct the entire amount (subject to the 10% AGI)?

Thank you.

[TaxGuyBill]

I'm not entirely sure what you are asking, so I'll start of with this:

Except for S-corporation shareholders, it is extremely unusual for an employer to have after-tax health insurance that is included on the W-2.

You can not tell if health insurance was added to the W-2 (except maybe for S-corporation shareholders) by just looking at the W-2. You would need to analyze the paychecks to determine if the insurance is pre-tax (which it almost always is) or after-tax.

In the unlikely event it is after-tax, the amount for the children can be used as Medical Deduction (subject to the 7.5% limitation), even if the other parent is claiming the dependent.

[TAXNJ]

Tax Book p.4-6 says employer sponsored health insurance premiums can be deducted if they are included in Box 1. Which is shown if boxes 1,3, and 5 are the same amount, right?

If so, is there any adjustment to be made if the premium includes insurance for the taxpayer and children that are being claimed by an ex-spouse? Or can the taxpayer deduct the entire amount (subject to the 10% AGI)?

Thank you.

More information need, but

Is this what you referenced from TTB:
"Employer sponsored health insurance plan. Do not include any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included in box 1 of the taxpayer’s (or spouse’s) Form W-2."

Question: ask the client if it was reimbursement for medical premiums? Or was it an error by the employer?

If the employer included the reimbursement in box 1, then the amount is taxable. If the client itemizes, then the cost of client's health insurance is deductible on Schedule A, subject to the applicable % of Adjusted Gross Income. Only you and the client makes that decision based on your research of the tax code (not a rely post).

As you may know, this is not common and not standard practice, so ask the client the specifics.