Tks all, appreciate the details a lot.

bill

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"bill" <bw1...[at]nospam.com> wrote:

- quote -

If the reimbursement is for a non-employee's medical
expenses and that non-employee is not a family member of the
employee (as defined in the IRC) then the reimbursement
doesn't qualify for exclusion from the employee's taxable
income. This practice is mandated in the Internal Revenue
Code.

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"bill" <bw1945[at]nospam.com> wrote:

- quote -

It's taxable because everything your employer provides you is taxable unless
it's specifically excluded by law, and this one has never been exempted by
Congress. Bills have been introduced to change this, but none has passed.

States are free to do as they like, and I think most if not all of the
states with formal civil unions have exempted this income from state
taxation.

--
Phil Marti
Clarksburg, MD

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bill wrote:

- quote -

Title 26 of U.S. Code sets the definition of what is an
employer tax-free benefit and who may partake in such a
benefit for purposes of federal income taxation. At the
current time, the benefit in question (tax-free employer
medical benefits) is only available to the taxpayer,
taxpayer's spouse and taxpayer's dependents. It would take
an Act of Congress and the President's approval to change
the definition of a spouse.

Each State of the Union, may pass laws that treat the
taxability of such fringe benefits in any manner they so
desire. That would require an Act of the State Legislature
and the Governor's approval.

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In some instances, Un married couples can have their
employer paid medical benefits cover their significant other
but the employer paid amount is now taxable income.

My question is who mandates this practice? A pres. Senator?
IRS? Wehn and how did the taxation start?

tks all

bw

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