Wisconsin Bill Passed to Conform State Tax Treatment of Coverage of Adult Children
Although health care reform legislation excluded the value of employer-provided health benefits provided to any employee’s child under the age of 27 at the end of the taxable year (not just tax dependents) effective March 30, 2010, several states did not incorporate that change into state law. As a result, there has been some confusion as to whether the value of employer-provided health benefits provided to non-tax dependent children would be subject to state taxes in those states. However, earlier this year, several states, including California and Minnesota, enacted legislation to conform state tax treatment of such coverage with federal tax treatment.
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