Is Medical Insurance Premiums Taxable Income?

by Kristi
(SD)

I've been the bookkeeper at our church since February (so this is the first time I've issued a W-2 for our pastor.)

Our pastor and his family are on Medi-Share (the medical bill paying/sharing program). Our church deposits directly into his checking account each month a check in the amount of his monthly medical "insurance premiums". Then our pastor pays the monthly cost to Medi-Share out of his checking account. Are the payments we are making to him considered income on his W-2? Do we need to report these payments on his W-2? And if so, how is this reported on the W-2?

If these payments are income to him, is there a way he and his family can be on Medi-Share and our church pays the monthly cost but in a way that is not considered income for him?

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

3Comments

life insurance

AAnonymous

Where Life insurance goes in the W2?

MediShare Payments ARE Taxable Income

JJimmy

MediShare is not insurance and would not qualify as a tax-free fringe benefit as normal insurance would.

Insurance Payments

VVickey

I am not familiar with Medi-Share. Usually when you are writing the check directly to the minister, it is considered taxable income, but you should call a Medi-Share representative and speak with them.
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