Friday News Updates: Will company health insurance be taxed?
NEW YORK (Dow Jones)–U.S. stocks rallied Friday, capping their fourth-straight positive week with a broad climb as readings on housing and capital spending by businesses pointed toward a stabilizing economy.
The Dow Jones Industrial Average jumped 168 points, or 1.6%, to 10830, in recent trading. All 30 of the measure’s components rose, led by a 3.7% rise in Alcoa, a 3.6% advance in Caterpillar and a 2.9% climb in Boeing. The Dow is up more than 2% for the week, on track to extend its winning streak to a fourth week. In addition, it is up 8.2% for the month, on pace for its biggest September gain since 1939.
The Nasdaq Composite advanced 1.9% to 2372. The Standard & Poor’s 500-stock index rose 1.9% to 1146, with all sectors in positive territory. The industrial and consumer-discretionary sectors led the gains.
As expected, Facebook founder and CEO Mark Zuckerberg unveiled today the creation of “Startup: Education” a charitable foundation to “improve educational opportunities for young people in America.” Its first project, to be announced later today on The Oprah Winfrey Show, is a $100 million donation to support the public school system in the troubled city of Newark, N.J.
My company pays $1,200 per month for my health care benefits. I was told that this will be real income and taxed as such in 2011. Is this true?
Since the health care reform bill was enacted this question has come up often. In fact, the rumor that your health insurance will now be taxable is not true.
It is true that beginning next year employers will report the amount that they pay for your health insurance on your W-2. Employer-paid health insurance will be a line item, just like other line items you may be familiar with such as the amount you contribute to your 401(k). However this amount will not be included in taxable income. The figure is there for reporting purposes only to the IRS.
So rest easy, your will not be taxed on your company-paid health insurance.