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Health Care Information on my W-2?

February 6, 2012

When you get your 2011 W-2, you might notice some new information on the form. Box 12 is where the church will report the cost of your group health insurance coverage. This amount is both the amount the church pays as well as the premiums paid via payroll deductions.

The amount, which will be designated by the code DD, is not taxable income. It’s informational only, designed to help IRS confirm taxpayers have coverage. Under the health care reform law, the Affordable Care Act, the data will help to enforce the eventual individual coverage if it survives a Supreme Court hearing as well as the so-called Cadillac tax on more expensive insurance plans.

However, if you don’t see anything in Box 12, don’t be concerned. The IRS ruled that reporting 2011 health care data is optional for employers.

Source – IRS

Clergy Financial Resources

Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations.


From → Clergy Tax Law

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