Tax-Free Health Insurance
— -- Uncle Sam can help with your medical insurance premiums.
Companies have been paying more and more for workers' health insurance. And chances are what they take out of your paycheck, as your share of the premium, has also been going up.
Company-provided health insurance is a fringe benefit that has never been taxed, and now there's a way your share can be tax-free, as well.
"Some companies have set up a program that's allowed under the law whereby the premiums the worker is paying towards health insurance are paid on a pre-tax basis," said Don Roberts of the IRS.
Roberts said the program works like a 401(k) or flexible spending account. What you put in at work doesn't count as income and doesn't show up on your W-2. But not all companies offer this program, even though it costs them nothing more than set-up costs.
"Employees who do not have that benefit might want to talk with their employer or the benefits office at your employer's to see whether or not they would begin offering that," Roberts added.
Click here for interactive tax explainers and calculators
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