Are health ins prem pretaxed

[pmasters]

What is the name of your state (only U.S. law)? In Pa are health ins prem pretaxed for state and local?

 

[ecmst12]

If they are pretax for federal, I *believe* they are also pretax for state.

 

[swalsh411]

They are pretax in PA for state income tax withholding if the employer has a qualified Section 125 plan. If they don't, then they are post-tax. The applicable code is 61 Pa. Code § 101.6(i).

 

[LdiJ]

I agree with the previous answers, however people should be aware that in the new health plans being put forth by congress, that its being considered to change all employee health insurance premiums to post tax.

Now, if they are post tax that allows a deduction on schedule A if medical expenses, including insurance, exceed 7 1/2 percent of adjusted gross income. However....they are also considering changing the 7 1/2 percent figure to 10%.

 

[TinkerBelleLuvr]

Are you saying that the employee contribution would be post-tax?

 

[LdiJ]

Are you saying that the employee contribution would be post-tax?

Yep...at least under one the plans that has been passed (either house or senate, I cannot remember which).

Who knows what a final, combined bill will contain.

 

[TinkerBelleLuvr]

oh would that stink. Now, we've bad year, and it looks like I might be able to claim medical this year. That is in spite of having health insurance. I couldn't imagine having to bear the cost of that too.

 

[HappyWanderer]

LdiJ is correct, of course. (When I differ with her it seems more of fact/theory difference than a law one.) However, no one knows what will happen behind closed doors. Whatever passes will change your life. Really. CHANGE YOUR LIFE.

How we handle health care will be huge. Taxes will only be one part of it.