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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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DOES THE DEDUCTION FOR AFLAC NEED TO BE ON AN INDIVIDUALS W-2

Customer Question

DOES THE DEDUCTION FOR AFLAC NEED TO BE ON AN INDIVIDUALS W-2 FORM IN BOX 14.
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thanks you for using Just Answer. Under Section 106(a), premiums for health insurance coverage paid by an employer for the benefit of employees and their dependents is deductible by the employer and excluded from employee gross income. This amount does not have to be on a individual Form W-2. The amount the employee paid for the health insurance reduced the amount reported on box 1 on Form W-2.
Expert:  Merlo replied 8 years ago.
Hello kuhny,

Since you asked if the "deduction" for AFLAC needed to be on an individual's W-2 form, I must assume that you are talking about premiums which were deducted from the employee's salary for this coverage.

If these deductions were made from the employee's salary for health benefits under a Cafeteria Plan which is made available under IRC Section 125, then the amount is not subject to tax, but it is reported in Box 14 with an appropriate description code of CAFE 125. The amount is not included in Box 1 reporting taxable wages.

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