Unit 22 Taxation of Health Insurance

Question 1

disability income

Answer 1

if premiums are taxable, benefits are tax free

if benefits are taxable, premium is tax free

Question 2

qualified long-term care

Answer 2

premiums:
-personally owned: includible with other medical expenses
-employer paid group: deductible to the employer, not taxable to employee
-employee paid group: pretax premiums are allowed

benefits are tax free

Question 3

medical/ dental expenses

Answer 3

premiums:
-personally owned: includible with other medical expenses
-employer paid group: deductible to the employer, not taxable to employee
-employee paid group: includible with other medical expenses

benefits are tax free

Question 4

accidental death and dismemberment

Answer 4

premiums:
-personally owned: not deductible employee
-employee paid group: not deductible

benefits: tax free