If you’ve ever looked at your W-2 form you may have noticed a section called “NT Health Benefits.” But what does this mean?
First a little bit of background: The W-2 form is used by employers to report an employee’s annual wages and taxes withheld.
This form is then used by the employee to file their income taxes.
The “NT” in “NT Health Benefits” stands for “non-taxable.” This means that the amount reported in this section is not subject to income taxes.
So if you see $100 reported in the NT Health Benefits section of your W-2 you won’t have to pay any taxes on that $100.
The NT Health Benefits section is used to report two things:
1. Health insurance premiums that were paid by the employer on behalf of the employee.
2. Health savings account (HSA) contributions that were made by the employee.
Let’s take a closer look at each of these.
1. Health Insurance Premiums Paid by the Employer
If your employer paid any of your health insurance premiums on your behalf those premiums will be reported in the NT Health Benefits section of your W-2.
For example let’s say that your health insurance premiums are $500 per month.
If your employer paid $400 of that amount and you paid $100 the employer would report $400 in the NT Health Benefits section of your W-2. You would then pay taxes on the $100 that you paid out-of-pocket.
2.
Health Savings Account Contributions Made by the Employee
If you made any contributions to a health savings account (HSA) those contributions will be reported in the NT Health Benefits section of your W-2.
For example let’s say that you contributed $500 to your HSA. This $500 contribution would be reported in the NT Health Benefits section of your W-2.
You would not pay any taxes on this $500 contribution.
So in summary the NT Health Benefits section of your W-2 is used to report two things: health insurance premiums that were paid by the employer on your behalf and HSA contributions that were made by you.
What is the NT Health Benefits mean on my W2?
NT stands for No Tax.
Thehealth benefitsmean that you do not have to pay taxes on them.
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