IRS Announces Additional Health Insurance Guidance
Neiffer: “The IRS provided a notice that actually provides needed relief for a lot of our farmers out there — especially if they are in a S Corporation. Farmers in S corporations have historically reimbursed themselves for health insurance and we’ve always included that as part of their W-2 wages and then deducted their health insurance on the front page of their 1040. That was thrown into a lot of confusion last year with some notices from the IRS and Department of Labor. We’ve just found out that we are still allowed to treat that as part of their wage compensation — there is no penalty with it. The IRS is going to allow this for 2014 and 2015. After that the policy will probably change. Likely in a lot of cases, this will lead to a lot of our farmers having to file some amended W-2s. But it is a good thing as it allows them to deduct things that we didn’t think they would other wise be able to deduct.”
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