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IRS delays W-2 disclosure requirement of health premium costs to 2012

October 13, 2010

The IRS has given employers an extra year to comply with the inane Obamacare requirement to disclose the cost of employee health insurance on W-2 forms (IR-2010-103).

This requirement has given rise to the urban legend that health insurance will be included in taxable income. That's not so; the requirement to disclose the premiums does not mean that they be included in taxable wages. It's just supposed to make you smarter, or something. The premiums will still be tax-exempt.

Of course, if you are a 2% S corporation shareholder-employee, your health insurance from the S corporation has to be included in taxable wages already.