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Posted by bill on April 22, 2007, 2:30 pm
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In some instances, Un married couples can have their
employer paid medical benefits cover their significant other
but the employer paid amount is now taxable income.
My question is who mandates this practice? A pres. Senator?
IRS? Wehn and how did the taxation start?
tks all
bw
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Posted by A.G. Kalman on April 23, 2007, 10:06 pm
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bill wrote:
> In some instances, Un married couples can have their
> employer paid medical benefits cover their significant other
> but the employer paid amount is now taxable income.
>
> My question is who mandates this practice? A pres. Senator?
> IRS? When and how did the taxation start?
Title 26 of U.S. Code sets the definition of what is an
employer tax-free benefit and who may partake in such a
benefit for purposes of federal income taxation. At the
current time, the benefit in question (tax-free employer
medical benefits) is only available to the taxpayer,
taxpayer's spouse and taxpayer's dependents. It would take
an Act of Congress and the President's approval to change
the definition of a spouse.
Each State of the Union, may pass laws that treat the
taxability of such fringe benefits in any manner they so
desire. That would require an Act of the State Legislature
and the Governor's approval.
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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
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Posted by Phil Marti on April 23, 2007, 10:06 pm
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> In some instances, Un married couples can have their
> employer paid medical benefits cover their significant other
> but the employer paid amount is now taxable income.
>
> My question is who mandates this practice?
It's taxable because everything your employer provides you is taxable unless
it's specifically excluded by law, and this one has never been exempted by
Congress. Bills have been introduced to change this, but none has passed.
States are free to do as they like, and I think most if not all of the
states with formal civil unions have exempted this income from state
taxation.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Bill Brown on April 23, 2007, 10:25 pm
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> In some instances, Un married couples can have their
> employer paid medical benefits cover their significant other
> but the employer paid amount is now taxable income.
>
> My question is who mandates this practice? A pres. Senator?
> IRS? Wehn and how did the taxation start?
If the reimbursement is for a non-employee's medical
expenses and that non-employee is not a family member of the
employee (as defined in the IRC) then the reimbursement
doesn't qualify for exclusion from the employee's taxable
income. This practice is mandated in the Internal Revenue
Code.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by bill on April 30, 2007, 11:22 am
Please log in for more thread options Tks all, appreciate the details a lot.
bill
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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