Health insurance counted toward qualifying income?

[Mike_B03]

On my W2s from last year, it shows $40,000 in field #1 (Wages, tips, other comp.) then $36,000 in field #3 (social security wages) and in field #4 (Medicare wages and tips).

In field #14 (Other), it says "Health Insurance $4000".

For qualifying purposes, will the amount shown in field #1 of $40,000 be used, even though part of it was paid as health insurance benefits? I am self employed by the way and this is how the accountant sent over the W2.

Additionally, on the taxes Form 1040, do they use line #22 (This is your total income) or line #37 (This is your adjusted gross income)? My adjusted is lower than total because the health insurance is taken as a deduction.

[tooleman694]

I have wondered the same exact thing, I dont know.

[Mike_B03]

Hmm, from what I've found online so far, they are supposed to use the figure from Line 7 on your Form 1040, which is "Wages, salaries, tips, etc. Attach Form(s) W-2"...which is the same figure as Line 1 on the W2 (the total income without taking out the health insurance deduction, so $40,000 in my above example).

[keithlacon]

I have also noticed exactly the same and its completely wrong. If a persons is rich then his health insurance is more and his health is more secured then poor peron health. Its complete discrimination and I hope government should take some necessary actions.