Third party coverage if fully paid by payroll deduction from taxable gross wages, is not taxable. Schedule A deduction provides for that. This is because Health Insurance proceeds used to pay medical costs are not taxable income. State does not provide this. IDOR is illegally taxing Health Insurance proceeds as income.
Federal taxation verifies it.
Instructions that existed for years becomes legal law, a legislated notice of change and a formal more pronounced notice of change to public is required. These changes are not merely clarification changes, they are changes to GIF bulletins of past. There are other things to consider. Instructions and Danny Young say only specifically mentioned employee benefit plans, can be subtractable. Sick pay can also be excluded from taxable income.