I see you have spotted some of why things are not clear. The IRS has stated that if the state requires, it may considered a state tax. WA is not considering it a state tax but as insurance.
Your employer said it was pre- tax and then said it does not reduce your taxable income so it is post-tax.
It is pure mud which is why WA posted that there are no clear rules from the IRS at the moment. It will not be income minus premiums paid. It is percentage based. So here are your options:
- Report it all and know that if you are audited, the worst case is no change or possible refund.
- Report the percentage you did not pay for and know that you could be right or you could owe penalties and interest for underpayment, if audited.
You are clearly trying to do the right thing and not willfully trying to be deceptive.
Pick the one you can handle and go for it. Keep your records showing WA not sure with no real guidance. Best wishes!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
