Advertisement
Call the Show 800-520-1234
LIVE: Mon-Fri, 6-9AM, ET
Hugh Hewitt Book Club
Call 800-520-1234 email Email Hugh
Hugh Hewitt Book Club

About That Obamacare Benefit?

Email Email Print
Advertisement

An interesting e-mail below. Any tax lawyers/accountants want to confirm for me the impact of Obama’s new benefit? hugh@hughhewitt.com

I’ve heard you talking about one of the “benefits” of Obamacare being the ability to add dependents to insurance until they are 26 years old. This has been the law in Illinois since June 2009. There is a catch to this. If the dependent you are adding doesn’t qualify as an “IRS qualified dependent” this is considered a taxable benefit for the individual that owns the insurance. So, for those employees who fall into this category, each payday, we have to add imputed income to their payroll that equals the monetary value of the insurance. The recommended imputed income amount is equal to the full cost of individual coverage. That means we add that dollar amount (for us it’s about $500) to the employee’s payroll, taxes are calculated and withheld, and the $500 is then removed from the employee’s payroll. Bottom line is the IRS, State, Social Security and Medicare all receive taxes on the value of the insurance benefit. Bittersweet deal.

Hughniverse

Listen Commercial FREE  |  On-Demand
Login Join
Advertisement
Advertise with us Advertisement
Advertisement
Advertisement
Book Hugh Hewitt as a speaker for your meeting

Follow Hugh Hewitt

Listen to the show on your amazon echo devices

The Hugh Hewitt Show - Mobile App

Download from App Store Get it on Google play
Advertisement
Advertisement
Friends and Allies of Rome