Starting in 2011, next year-the W-2 tax form sent by your employer will be increased to show the value of whatever health insurance you are provided. It doesn’t matter if you’re retired. Your gross income WILL go up by the amount of insurance your employer paid for. So you’ll be required to pay taxes on a larger sum of money that you actually received. Take the tax form you just finished for 2009 and see what $15,000.00 or $20,000.00 additional gross income does to your tax debt. That’s what you’ll pay next year. For many it puts you into a much higher bracket.You can find the detais on this clause by going to http://www.thomas.gov// , enter “HR 3590.” Or you can also search the Patient Protection and Affordable Care bill for Title IX Revenue Provisions-Subtitle A: Revenue Offset “(Sec. 9002) that requires employers to include in the W-2 form of each employee the aggregate cost of applicable employer-sponsored group health coverage that is excludable from the employee’s gross income (excluding the value of contributions to flexible spending arrangements).
UPDATE: Further clarification on this regulation, and what it means, is here.