Local 730 UAW Benefit Report

Correction – Legal Services Imputed Income

Should be $6.23 reported on

Line 59, Form 1040

At the December retiree meetings for Local and Local 1231, handout information was provided by Benefit Plan Reps concerning how to report imputed income benefit on your federal income tax in regards to our GM/UAW Legal Services Plan. The handout noted that the cost of the plan to each of us in 2005 was $81.34 and that this amount should be entered on line 59 of your Form 1040. This is not correct.

What should be reported on line 59 is the taxable portion of the $81.34 plan cost. That amounts to $6.23 and is noted in box 14 of your 2005 GM W-2 form.

You should therefore enter $6.23 on line 59 of Form 1040.

Thanks to Larry Ingalls, 1231 Retirees’ President for bringing this error to my attention.

Jerry Reid

UAW Benefit Plans Rep

JR:jmb/opeiu459/benrepgvlnfeb06