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New Member
posted Jun 6, 2019 5:48:09 AM

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

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1 Best answer
Level 15
Jun 6, 2019 5:48:35 AM

Ask your employer if it is going to be on your W-2. You have several issues:  

1. The money is taxable.

2. You never purchased the health insurance, so there will be an ACA penalty.

3  You employer may ask you to pay it back, since you did not use it for its intended purpose.

17 Replies
Level 15
Jun 6, 2019 5:48:11 AM

Paid to you by whom? Your employer?

New Member
Jun 6, 2019 5:48:12 AM

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

Level 15
Jun 6, 2019 5:48:14 AM

Will it be on your W-2?

New Member
Jun 6, 2019 5:48:15 AM

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?

Level 15
Jun 6, 2019 5:48:17 AM

It is taxable income.

New Member
Jun 6, 2019 5:48:18 AM

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

Level 15
Jun 6, 2019 5:48:20 AM

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

New Member
Jun 6, 2019 5:48:21 AM

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

New Member
Jun 6, 2019 5:48:23 AM

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

Level 15
Jun 6, 2019 5:48:24 AM
Level 15
Jun 6, 2019 5:48:26 AM

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.

Level 9
Jun 6, 2019 5:48:27 AM

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

New Member
Jun 6, 2019 5:48:28 AM

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.

New Member
Jun 6, 2019 5:48:29 AM

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.

New Member
Jun 6, 2019 5:48:30 AM

I wasn't aware of anything being abnormal. I have never had this kind of arrangement before.

New Member
Jun 6, 2019 5:48:32 AM

Thank you for the insight. I guess I will have to wait and see.

Level 15
Jun 6, 2019 5:48:35 AM

Ask your employer if it is going to be on your W-2. You have several issues:  

1. The money is taxable.

2. You never purchased the health insurance, so there will be an ACA penalty.

3  You employer may ask you to pay it back, since you did not use it for its intended purpose.