Grad Health Insurance and 1098-T

[emily34]

I am a graduate research assistant, so I am employed by my university. I get a W2 and all of my fees paid for, including health insurance, as a benefit of my employment. Box 5 on my 1098-T includes the money paid for by my employment for health insurance. I've seen conflicting info on if this is taxed - as I understand it, if this was from a fellowship or something, it would be taxed. But this is from my employment, so I think it should not be? Is it not the same as if I had a normal industry job that paid for my health insurance premiums, which is normally an untaxed benefit?

If I'm correct that it's untaxed, should I enter it as tax-free employer provided assistance or as something else?

Thanks!!

[Hal_Al]

It's not clear what's going on there.  Employer paid health insurance is not reported in box 5 of a 1098-T, even at a university.  If anywhere, it's in box 12 or box 14 of the W-2.  The most likely explanation is you're confused.

But the simple rule is that anything in box 5 is tax free if used for qualified educational expenses (QEE).  Your QEE are shown in box 1 of the 1098-T.   The difference between the two is taxable income (if box 5 is more than box 1).   You may reduce the taxable amount by any other QEE you have, not shown in box 1. e.g. books.

[KrisD15]

You should speak with the HR department. 

If it were reported on the W-2, you're right, it would not be taxable income. 

Reported in Box 5 of the 1098-T does make it taxable. 

In order to treat the funds as employer provided health insurance, it would need to be reported on your W-2. 

[emily34]

To clarify - it is not on my W2. My situation is a little unique in that I am the employee of a national lab affiliated with my university. They pay for my health insurance through fee remissions, which is why they show up on my 1098-T rather than a W2. I am certain that this fee on my box 5 was for health insurance. The insurance is definitely a benefit of employment though - if I was not employed, it would not be paid for. (This is not a fellowship or grant either). In past years when I was employed through the university directly, the health insurance was still a tax-free benefit of my employment, and was not on the 1098-T or the W2. I believe that it only showed up differently this year because of the national lab affiliation.

[AmyC]

Under the Affordable Care Act, health insurance is not taxable. Call the issuer and find out where the numbers are coming from.