What is considered income?
Posted 26 December 2012 - 01:49 PM
Posted 26 December 2012 - 03:15 PM
According to the IRS W-2 instructions:
Cost of employer-sponsored health coverage (if such cost is provided by the employer).
The reporting in Box 12, using Code DD, of the cost of employer-sponsored health coverage is for your information only. The amount reported with Code DD is not taxable.
If it's true that the the amount paid by the employer is shown separately in Box 12 and is not taxable, then you would not report it on your tax return and probably not have to show it as income on anything else.
Ask your employer if he fills out the W-2s that way.
If yes, then just make sure you and your girlfriend keep your mouths shut as to her being covered on your medical insurance. Nobody needs to know about it.
Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk.
Posted 27 December 2012 - 12:10 AM
You might not have a problem.
The cost of the employer provided insurance for the girlfriend is taxable income and must be included in wages unless the girlfriend qualifies as the OP's dependent. The rule is clearly spelled out in Treas. Reg. § 1.106-1: “The gross income of an employee does not include contributions which his employer makes to an accident or health plan for compensation (through insurance or otherwise) to the employee for personal injuries or sickness incurred by him, his spouse, or his dependents, as defined in section 152.” (Italics added.)
If it’s included in income on the W-2, the reimbursement from the girlfriend for it won’t also result in income to the OP for federal income tax purposes. And although the OP did not specify what state’s law applies for the child support determination, I think it likely that the state would not count the girlfriend’s reimbursement as income for child support purposes either. Counting that reimbursement would effectively double count the income.
Posted 28 December 2012 - 12:25 PM
Posted 28 December 2012 - 12:35 PM
Posted 28 December 2012 - 12:46 PM
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