topic Where do I enter income distributed for a Hospital Indemnity Plan? in Deductions & credits

Where do I enter income distributed for a Hospital Indemnity Plan?

kique198three — Tue, 04 Jun 2019 21:47:48 GMT

It depends. Usually this type of insurance is purchased...

DanielV01 — Tue, 04 Jun 2019 21:47:49 GMT

It depends. Usually this type of insurance is purchased with after-tax funds which are not deductible on your return. When this is the case, benefits received are not taxable. However, if your employer has a plan that pays for this insurance pre-tax, then any benefit claims paid will be included in taxable income.

Such payments will be included as "Other Income" on line 21. This FAQ gives additional information on this subject: https://ttlc.intuit.com/replies/3300312

{Edited 02/24/18: 21:05 PST}

Interesting, because I was notified from my employer that...

kique198three — Tue, 04 Jun 2019 21:47:50 GMT

Interesting, because I was notified from my employer that MetLife had a system error and did not distribute the 1099-Misc before the Jan 31st deadline. The email also said that any income received over $600 must be reported to the employee and IRS on a Form 1099-Misc as taxable income.

The email states "The HIP plan is a pretax benefit option...

kique198three — Tue, 04 Jun 2019 21:47:52 GMT

The email states "The HIP plan is a pretax benefit option through our Section 125 Cafeteria plan."

Since your employer paid pre-tax, it is correct that the...

DanielV01 — Tue, 04 Jun 2019 21:47:53 GMT

Since your employer paid pre-tax, it is correct that the benefit is also taxable. Please note my edited answer. It is less common for this type of insurance to be paid for with pre-tax funds.

Thank you! This is helpful.

kique198three — Tue, 04 Jun 2019 21:47:54 GMT

Thank you! This is helpful.

You're welcome

DanielV01 — Tue, 04 Jun 2019 21:47:56 GMT

You're welcome