Health reform and taxes

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Q: I have heard that under the new health care bill, the dollar amount of employer-provided health care premiums will be added to one’s income on one’s W-2 starting next year. Is this correct?

A: Relax. That provision doesn’t go into effect until 2018. Further, it’s not entirely clear what its effect would be.

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  1. If the dollar amount of the employer provided health care premium is added to one’s W-2 then it would seem clear that one would be paying additional income tax on that amount.

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