Update: Which family members can have tax-free health coverage?

Employer-provided family health coverage is tax-free to employees only if family members meet certain rules. Congress and the IRS have recently revised these tax rules, creating uncertainty about which family members can have employer-provided health coverage exempt from federal taxes. This Update reflects IRS guidance issued earlier this year and federal tax law changes enacted in October that affect tax treatment of family health coverage. A useful decision tree and checklist guide employees through the steps for determining which family members qualify for tax-free employer health benefits.  (Update, 12 Nov 2008, 5 pages)

• Full Update (PDF)

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