Thursday, April 29, 2010

Tax Bills Won’t Rise for Parents Who Keep Older Kids on Health Insurance

After millions of taxpayers expressed anger over concerns they might be hit with additional taxes for children under the age of 27 still receiving health benefits, both the IRS and Obama administration have spoken up regarding the issue. According to LA, the Federal government announced that tax bills will NOT increase for these families.

The president and his congressional allies have billed the new benefit for older children as one of the most immediate advantages of health legislation that in other respects remains highly controversial.

And last week, after prodding from Health and Human Services Secretary Kathleen Sebelius, several leading national insurance companies said they would offer the extended coverage immediately to parents who buy plans on their own.

But the healthcare bill did not make clear if employees would have to pay taxes on the additional benefit if they receive health insurance through work, as most Americans do.

Tuesday, the IRS issued a 12-page notice explaining that the added insurance for children under 27 would be tax-free, like other employer-provided health benefits, and that employers with some kinds of plans could begin offering the benefit immediately.

Continue reading at LA…

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