Yes, that applies to retired employees as well. The money you receive as a direct reimbursement for insurance premiums are not taxable. However, depending on how your company handles it, you may still need to report the income and it could potentially be taxable. When a company directly reimburses you based on a payment made to the insurance company, this is not taxable.
If they are just sending you say $400 a month to cover your premiums without verification of those premiums being paid or specification that this must be used to pay your insurance premiums then this would be taxable income that if you are able to itemize you would be able to deduct the premiums you paid.
If they are sending you a 1099-Misc, it is likely you do need to include this in your income as they may be saying we are just sending you this money, but did not meet the standards to say it is not taxable. To do this you can enter it by selecting the following:
- Federal
- Income and Expenses
- Scroll down to Less Common Income and click Show More
- Start next to Miscellaneous Income
- Start next to Other Reportable Income
This will put it on line 8z of your schedule 1 as other income.
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