Should I claim money paid to me to help cover health insurance premiums?

[SweetieJean]

Paid to you by whom? Your employer?

[teedogg72]

Yes. I was paid 350 a month to go towards a health insurance premium but never had insurance. How do I claim that income?

[SweetieJean]

Will it be on your W-2?

[teedogg72]

I would imagine that it would be, yes. It was paid to me but never taxed. It was 3150.00. How is this going to affect my taxes/refund?

[SweetieJean]

It is taxable income.

[teedogg72]

So how do I claim it, or what do I claim it under to be more specific?

[SweetieJean]

Wait to see if it is already on your W-2.

[teedogg72]

I was covered under Medicaid for the first half of the year. I believe that waives the ACA penalty, does it not?

[teedogg72]

I was hoping to file before my W2 came in. Can I go back and change my filing once I get my W2?

[SweetieJean]

You cannot file until you have the W-2.  Also see:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/2018-tax-filing-season-begins-jan-29-tax-returns-due-april-17-help-avai...>

[SweetieJean]

Why was your employer giving you money for health insurance if you already had (free) Medicaid?  I wonder if they were trying to avoid payroll taxes on that amount each month, and/or the ACA employer mandates.

[TaxGuyBill]

Depending on the exact circumstances, it sounds like the employer could be in big trouble for that arrangement.

[teedogg72]

I started in mid-March. I immediately told the State of Illinois about my job, and Medicaid ran out the beginning of June. I had been receiving money monthly to go towards my health care premiums. Once the Medicaid ran out, I was without healthcare. It is a non-profit, if that helps. I didn't think anything of it until I started entering my information in Turbo Tax a week ago.

[teedogg72]

Not that I am not concerned about my employer getting in trouble, but I am worried about me first. I am worried about what this will do to my return and my employer.