Is Medical Insurance Premiums Taxable Income?

by Kristi

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?

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Comments for Is Medical Insurance Premiums Taxable Income?

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Jan 29, 2011
Insurance Payments
by: Vickey

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.

Nov 26, 2012
MediShare Payments ARE Taxable Income
by: Jimmy

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

Jan 13, 2014
life insurance
by: Anonymous

Where Life insurance goes in the W2?

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