"TB" <google[at]anthonybrown.com> wrote:

- quote -

I believe that your employer is incorrect in his assertion
regarding the 1099. There is no difference to him if he
pays the insurance company directly or if he reimburses you
AFTER you have already paid the insurance company. Either
way, he is picking up part of the cost of health insurance
for you.

If you provide him with documentation from your wife's
employer showing that you are covered on her policy but that
you have to pay for it separately, this should be sufficient
documentation to protect your employer in the event he is
audited - which, BTW, is what I believe his concern is.

If he won't bite on that and still insists on giving you a
1099 for the insurance, I would advise you to talk to a
professional accountant about how to deal with this on your
return. It isn't all that hard, you should be able to pick
up the income and them back it right back off with an brief
explaination.

You may also mention to your employer that issuing a 1099 is
inappropriate under the circumstances since you are not
doing anything that warrants is. It is possible, though not
very likely, that he could get into some trouble for
incorrectly issuing the 1099.

Gene E. Utterback, EA

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My wife's employer pays the premium for my wife's portion of
the health insurance, but does not pay the portion of the
premium that covers me.

My employer will reimburse half of the cost for health
insurance for me. In the past I purchased insurance to
cover me only, and when the premium bill came, I would turn
it in and he would make a check out to the insurance company
for half the amount, and I would make out a check for the
other half.

Now, I have been added to my wife's health insurance, and
she has an amount deducted from her paycheck twice a month
to cover me. My employer states that unless he receives a
bill which he can write a check out straight to the
insurance company, he will reimburse me, but, he will then
have to give me a 1099 at the end of the year, which of
course I'll have to pay taxes on.

Is there a way to document this so that he won't have to
give me a 1099? If he gives me a 1099, can I state that it
is for health insurance premiums and not pay taxes on it?
The amount that will be reimbursed will be roughly
$900/year.

thanks
tb

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