Health Care Smealth Care
Subject: 2011 W-2 Tax Forms--Surprise, surprise!
Should you want to verify this, go to http://www.thomas.gov/, enter "HR 3590"
in the search box and look for "CRS Summaries." This is what you'll find.
Title IX Revenue Provisions—Subtitle A: Revenue Offset
"(Sec. 9002) Requires employers to include in the W-2 form of each employee
the aggregate cost of applicable employer-sponsored group health coverage
that is excludable from the employee's gross income (excluding the value of
contributions to flexible spending arrangements)."
Starting in 2011—next year—the W-2 tax form sent by your employer will be
increased to show the value of whatever health insurance you are provided.
It doesn't matter if you're retired. Your gross income WILL go up by the amount
of insurance your employer paid for. So you’ll be required to pay taxes on a larger
sum of money that you actually received.
Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That's what you'll pay next year. For many it puts you into a much higher bracket. This is how the government is going to buy insurance for fifteen (15) percent that don't have insurance and it's only part of the tax increases, but it's not really a "tax increase" as such, it a redefinition of your taxable income.
Also, go to Kiplinger's and read about the thirteen (13) tax changes for 2010 that
could affect you.
Additionally, the current 2.9% Medicare tax goes up to 3.8% and in addition to applying to payroll taxes, now also applies to interest, dividends, incentives, & all other income types.
Remember, the Bush tax cuts expire at the end of the year...that places everyone in a higher tax bracket.
Yet another very good reason to vote in the primary and the November elections. Vote out the tax and spend politicians, whether they are Democrat or Rebublican. The only change in the direction this country is taking will be the result of our votes. See you at the polls. leslie edwards