Should employer-paid health care benefits be reported on every W-2?

Q. I am retired but I get a W-2 for a small amount, but it is subject to Social Security, Medicare and other taxes just as I was still employed. The amount is for the cost of employer-paid life insurance over $50,000. It also shows an amount of about $14,000 that the company paid for health care but is not taxable. My friends who do not get this benefit don’t get a W-2. Why aren’t all retirees on pensions and getting health benefits advised of their employer’s cost for health care? — Curious A. Let’s take a look at all the pieces here. First, employers frequently provide group life insurance for their employees and retirees as a benefit. The federal government allows these payments to be tax

Do N.J. teachers have to pay tax on state medical benefits?

Q. I am a public school teacher who has weekly deductions from my paycheck as my portion for state mandated health insurance payments. These payments are listed on my W-2 for my federal tax information as non-tax contributions. However, it seems that New Jersey is including these payments in my state taxable income. If so, can these payments be deducted on my state return and if so, where? — Teacher A. Great question. In New Jersey, each school district negotiates the health insurance benefits it will provide for teachers with the local teachers’ union, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. Accordingly, s

Am I getting the full N.J. veteran’s tax break?

Q. I’ve been approved by the state for New Jersey’s $3,000 veteran’s exemption. Both H&R Block and TurboTax said the state told them to list the exemption on Line 9 of the return, but this doesn’t allow for the full benefit of the exemption. Can you explain?— Veteran A. Sure thing. In 2016, the state increased the gas tax, and the bill had a number of other items tacked on to it. One was a new $3,000 tax deduction for all veterans who have an Honorable Discharge from the armed forces, National Guard or Reserves, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. Kiely said this deduction is actually an additional pers

Can I qualify for the Homestead Rebate if a trust owns my condo?

Q. I live in a condo that my kids paid for and put in a trust. I’m a senior and I live on $881 per month. I pay all the taxes, sewer fees, and homeowners fees in my name even though the tax bill is addressed to the trust. Because I pay all the expenses, am I entitled to the Homestead Rebate? — Senior A. New Jersey has some of the highest property tax costs in the nation. To help seniors with the high costs, the state offers the Homestead Rebate to those who qualify. To qualify, you must be a New Jersey resident, you must own and occupy the property as a principal residence and you must meet income requirements, said Bernie Kiely, a certified financial planner and certified public accountant

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Kiely Capital Management offers financial planning and investment advice. Serving Central and Northern New Jersey, Yvonne and Bernard (Bernie) Kiely provide over 25 years of experience offering discretionary asset management, retirement planning and income tax preparation. KCM is registered with the State of New Jersey as a Registered Investment Advisor.

 

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