According to an IRS release last week, the number of taxpayers electronically filing their own returns from home has increased compared to last year at this time by approximately 6%. Overall, the IRS has received about the same number of tax returns as last year at this time, but has processed 7.7% more of those returns. For the last few years, the IRS has been pushing filers to submit their returns electronically, and it appears more taxpayers are doing so. It seems the increase in number of returns processed could be at least partially attributable to the increased percentage of returns that were electronically filed.
The IRS sends tax tips daily during the tax season, and a few times a week the rest of the year. The tax tips cover a range of topics, and old tips are searchable on the IRS website. (For those interested in getting Tax Tips from the IRS, you can subscribe here.) Last week's tax tip entitled What You Need to Know About the Amount of Health Insurance Reported on Form W-2 is part of their Health Care Tax Tip series. If while filing your own taxes this year you wondered what to do with the amount reported on your W-2 in Box 12 with code "DD," or wondered what that amount was for, the tax tip can answer that question. Starting with your 2012 taxes, employers were required to report the cost of coverage under a group health plan for informational purposes, so employees have useful and comparable information on the cost of health coverage. For certain employers in certain situations, there is transitional relief and the amount need not be reported until the IRS states otherwise. If you are still curious what is and is not reported, the IRS has a very informative page discussing what types of employer sponsored health coverage is reported on Form W-2.