I have received about a dozen emails saying that according to an email that is going around, in 2011 employer provided health insurance would no longer be tax-free. This just shows the power and the danger of the instant information Internet society. This information is wrong.
The truth is that in 2011 the employer must report to the IRS on the W-2 the amount of health insurance, but that amount will NOT be taxed as income in 2011. The e-mail is a hoax. Presumably, the reason Congress required the value to be shown on W-2s is to give workers a better appreciation of the amount spent to cover them or to get information on what it is costing them to allow this tax-free fringe benefit.
