Because of health reform, insurance plans that didn't spend at least 80 percent of premiums on health services had to refund 12.8 million customers some $1.1 billion in premiums last year. If taxpayers took a deduction on those premiums last year, then they'll have to report the refunds this year. "It's the same principle as state tax refunds," Mr. Rodgers says.
Health insurance payments may also show up on a W-2. Those reports have no effect this year, but employers are preparing for 2014, when taxpayers (absent an exemption) will owe a penalty if they don't carry health insurance.
