This is in Texas and weWe are a church in Texas. The pastor has apastor's contract that says thatwith the church will payincludes payment for health insurance for him and his family. TheThe pastor's wife turned 65 this year and is now eligible for Medicare. WeWe have agreed to pay her premiums for whatever parts A(A,B,C C,D D),... will give giving her the the equivalent of the insurance to what shethat she had before.
We can not get a straight answer from anyone we talk to at the IRS as to whether this is taxable income. On one hand, we've been providing insurance for her for 20 years and those premiums have not been taxable. So why should that change? On the other hand, now Now, instead of us paying the company directly, she is documenting her Medicare expenses and we are reimbursing her. We've
We've called the IRS several times, but we always get the lowest level peon who is either non-committal, or is "pretty sure" or has such bad grammar that we don't trust the answer. We can not get a straight answer from anyone at the IRS as to whether this is taxable income.
We have been providing insurance for her for 20 years and those premiums have not been taxable. So in sum, I guesswhy should that change? So the question is: Are, are insurance premium reimbursements considered taxable income?