New W-2 Reporting Requirements for Health Care Confusing Taxpayers (Already)

I had prepped myself for the idea that taxpayers were going to be confused by the new health care reporting requirements ever since last year when the rumormongering about taxing health care benefits in 2011 started. I wasn't expecting taxpayers to be in a dither quite so far ahead of tax season. Judging from the number of panicky emails in my inbox, I was wrong… But then (*smacks self in the head*), I had forgotten: 2012 is an election year. 'Tis the season for half truths and innuendo.

So let me see if I can nip some of this in the bud now.

It is true that for the calendar and tax year 2011 employers must report employer-provided health care benefits for employees. The amount of benefits paid on your behalf will appear on your W-2 in 2012 as a report. It will not affect your taxable income for the calendar and tax year 2011.

The amount will be reported in Box 12, using code DD on your federal form W-2 for 2011 (form will download as pdf). In case you're wondering where that would be reported on the actual form, take a peek at the compensation side of the form W-2:

rest at http://www.forbes.com/sites/kellyphillipserb/2011/11/10/new-w-2-reporting-requirements-for-health-care-confusing-taxpayers-already/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+taxgirlfeed+%28taxgirl+for+Forbes%29