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My Employer Paid Health Insurance Stipend for Retirement is Being Taxed on a 1099 MISC as Income.
When I retired, my employer offered to pay 50% of my current employee health insurance or give me 50% of the current premium toward an insurance carrier of my choice. I chose to receive the 50% monthly premium until the age of 65 and apply it to another carrier for my family. However, each year, my previous employer sends me a 1099 MISC as business income for said stipend. Therefore, my 50% health insurance stipend is being taxed as Self Employment income making my 50% stipend a 22% benefit. Is this normal? Should my medical insurance stipend be taxed as income? Why am I paying tax on a stipend being utilized for health insurance? Thank you.
‎February 6, 2022
8:55 AM