{"id":540,"date":"2009-03-22T18:02:30","date_gmt":"2009-03-22T22:02:30","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=540"},"modified":"2009-03-22T18:02:30","modified_gmt":"2009-03-22T22:02:30","slug":"tax-treatment-of-health-coverage-for-former-spouse-clarified","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/03\/tax-treatment-of-health-coverage-for-former-spouse-clarified\/","title":{"rendered":"Tax Treatment of Health Coverage for Former Spouse Clarified"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"margin: 0in 0in 6pt;\"><span style=\"font-size: 10pt; font-family: Verdana;\">The Internal Revenue Code of 1986 as amended (IRC) provides in <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00000106----000-.html\" target=\"_blank\">\u00a7106<\/a> for an exclusion from income for employer-provided health insurance that covers the employee, the employee\u2019s spouse, the employee\u2019s children, and the employee\u2019s qualifying relatives. <a href=\"http:\/\/edocket.access.gpo.gov\/2007\/pdf\/E7-14827.pdf\" target=\"_blank\">Prop. Treas. Reg. \u00a7 1.125-1(h), 22 Fed. Reg. 43937 (August 6, 2007)<\/a> clarified that coverage for a former spouse who is not a dependent is not excludible from an employee\u2019s income. Therefore, the fair market value of coverage for a former spouse is includible in an employee\u2019s income for federal income tax purposes.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt;\"><span style=\"font-size: 10pt; font-family: Verdana;\">In the recently released, <a href=\"http:\/\/www.mass.gov\/?pageID=dorterminal&amp;L=7&amp;L0=Home&amp;L1=Businesses&amp;L2=Help+%26+Resources&amp;L3=Legal+Library&amp;L4=Directives&amp;L5=Directives+-+By+Decade&amp;L6=(2000-2009)+Directives&amp;sid=Ador&amp;b=terminalcontent&amp;f=dor_rul_reg_dir_dir_09_xx_draft&amp;csid=Ador\" target=\"_blank\">Working Draft Directive 09-XX, <em style=\"mso-bidi-font-style: normal;\">Personal Income Tax Treatment of Employer-Provided Health Insurance Coverage for an Employee\u2019s Former Spouse<\/em><\/a>, the <a href=\"http:\/\/www.mass.gov\/?pageID=dorhomepage&amp;L=1&amp;L0=Home&amp;sid=Ador\" target=\"_blank\">Massachusetts Department of Revenue<\/a> concludes that any income required to be included in federal gross income for coverage required under Massachusetts General Laws (MGL) shall be excluded from Massachusetts gross income. Coverage may be required for former spouses under the following laws, among others: <a href=\"http:\/\/www.mass.gov\/legis\/laws\/mgl\/176g-5a.htm\" target=\"_blank\">MGL c. 176G \u00a7 5A<\/a>, <a href=\"http:\/\/www.mass.gov\/legis\/laws\/mgl\/32a-11a.htm\" target=\"_blank\">MGL c. 32A \u00a7 11A<\/a>, <a href=\"http:\/\/www.mass.gov\/legis\/laws\/mgl\/175-110.htm\" target=\"_blank\">MGL c. 175 \u00a7 110<\/a>, <a href=\"http:\/\/www.mass.gov\/legis\/laws\/mgl\/176a-8f.htm\" target=\"_blank\">MGL c. 176A \u00a7 8F<\/a>, and <a href=\"http:\/\/www.mass.gov\/legis\/laws\/mgl\/176b-6b.htm\" target=\"_blank\">MGL c. 176B \u00a76B<\/a>. Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have any questions on this <a href=\"http:\/\/www.mass.gov\/?pageID=dorterminal&amp;L=7&amp;L0=Home&amp;L1=Businesses&amp;L2=Help+%26+Resources&amp;L3=Legal+Library&amp;L4=Directives&amp;L5=Directives+-+By+Decade&amp;L6=(2000-2009)+Directives&amp;sid=Ador&amp;b=terminalcontent&amp;f=dor_rul_reg_dir_dir_09_xx_draft&amp;csid=Ador\" target=\"_blank\">Working Draft Directive<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Internal Revenue Code of 1986 as amended (IRC) provides in \u00a7106 for an exclusion from income for employer-provided health insurance that covers the employee, the employee\u2019s spouse, the employee\u2019s children, and the employee\u2019s qualifying relatives. Prop. Treas. Reg. \u00a7 1.125-1(h), 22 Fed. Reg. 43937 (August 6, 2007) clarified that coverage for a former spouse [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[833,741,567,13,86,742,313],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/540"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=540"}],"version-history":[{"count":3,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/540\/revisions"}],"predecessor-version":[{"id":780,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/540\/revisions\/780"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}