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A significant return on investment from awards is augmented by their tax deductibility. As per the Internal Revenue Service, you can deduct up to $400 for non-qualified employee achievement awards and $1,600 for qualified awards given to the same employee within a year.
It also shows pre-tax contributions made to your account by you and your employer through payroll deductions. Its a little different from your W-2 because itll show any contributions not just those made through payroll deductions. This article walks you through how to complete Form 8889.
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Today’s reader note is questioning the number of deductions on their final pay. Now, my deductions are through the roof – making my net pay very small. Now, my deductions are through the roof – making my net pay very small. Also, you can see another great SHRM article here. Of course, SHRM is a great resource.
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In fact, when surveyed by the National Association of Insurance Commissioners (NAIC), only about a quarter of Gen Z adults could define the terms “deductible” (27%) and “copay” (29%). However, Gen Z employees are particularly susceptible to a lack of education on insurance terms and policies.
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I know you guys know this but please remember that Chad can’t possibly cover every contingency in this article. Section 62(a) defines adjusted gross income as the income of Section 61, minus certain deductions. I want to extend a huge thanks to Chad and our friends at Paycom for helping us with this article. Oh, one more thing.
The term “high deductible health plan” has often carried with it a negative connotation for employees. According to a recent article from SHRM covering research from the Employees Benefit Research Institute (EBRI), enrollment in an HDHP promotes more conscious health care purchase decisions. Like this blog?
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