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Are there any new tax benefits for my adult child's coverage?

Tax benefits are available for your adult child's health coverage under the Patient Protection and Affordable Care Act (PPACA). The PPACA allows your children to stay covered under your insurance plan until the end of the month in which they turn age 26. Under a new tax provision in the PPACA and the Treasury guidance, the value of your employer-provided health coverage for your adult child is excluded from your taxable income through the end of the taxable year in which your child turns 26. That means if your child turns 26 in June, but your plan allows your child to stay on your plan through the end of your taxable year (through December, for most people), and your child does stay on your plan during that time, the value of that plan for the full year will not be included in your taxable income for that year. This expanded health care tax benefit applies to workplace and retiree health plans. It also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.