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Is money given to a retiree for their health insurance premiums taxable? They directly pay the carrier.

Forum|Forum|6 years ago
June 1, 2019
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If it is, what tax form would they get? A w-2 or 1099.

Best answer by AnnaB

Yes, generally accident and health insurance premiums paid through a retirement plan are taxable income and are considered to be payments from the retirement plan and would be included with your income amount on Form 1099-R. There are two common exceptions to this which may allow for exclusion from gross income:

The payments are from a 401(h) plan and would otherwise be deductible as a medical expense
The health insurance of long-term care insurance is for a qualified retired public safety officer and their spouse or dependents. If this is the case, your amount would still be included in your Form 1099-R taxable income, but an exclusion can be taken and TurboTax will ask the necessary follow-up questions to calculate this.

You can enter your health insurance premiums that are not excluded from income (reported in Box 5 of your Form 1099-R) as a medical expense. If you are eligible to itemize, this amount may be deductible.

A

AnnaBAnswer

Yes, generally accident and health insurance premiums paid through a retirement plan are taxable income and are considered to be payments from the retirement plan and would be included with your income amount on Form 1099-R. There are two common exceptions to this which may allow for exclusion from gross income:

The payments are from a 401(h) plan and would otherwise be deductible as a medical expense
The health insurance of long-term care insurance is for a qualified retired public safety officer and their spouse or dependents. If this is the case, your amount would still be included in your Form 1099-R taxable income, but an exclusion can be taken and TurboTax will ask the necessary follow-up questions to calculate this.

You can enter your health insurance premiums that are not excluded from income (reported in Box 5 of your Form 1099-R) as a medical expense. If you are eligible to itemize, this amount may be deductible.

M

mchambersAuthor

Is this the same if the only money received is for the health premium for MED B, D,and supplemental to be paid? There is not an actual retirement benefit received above the premium amount. However, an increased amount was given to help with taxes.