Taxations

Question 1

As a rule each annuity payment:

Answer 1

is part nontaxable (return of cost) and part taxable (interest/dividends).

Question 2

Premiums for individual Accidental Death and Dismemberment plan are:

Answer 2

Not tax deductible

Question 3

Benefits received from an individual disability plan are:

Answer 3

not taxable as long as the premiums were paid with after tax income

Question 4

Benefits from a hospital policy are:

Answer 4

not taxable

Question 5

Premiums for individual health, accident or long-term-care policies can be deductible if:

Answer 5

the taxpayer’s medical expenses exceed 10% of his/her adjusted gross income during a taxable year

Question 6

Individual disability premiums are:

Answer 6

never tax deductible

Question 7

The benefits that the employees receive for health and accident coverage are:

Answer 7

tax-free

Question 8

The benefits that the employees receive for long-term disability coverage are

Answer 8

taxable if paid by employer

Question 9

Health insurance reimbursements generally are:

Answer 9

not taxable income to individuals