Chapter 16/1: Federal Tax and Health Insurance – Flashcards

Premiums for individual disability income insurance are paid with after-tax dollars, but benefits are not considered taxable income. The correct answer is: Premiums cannot be deducted from taxes, but benefits are tax-free.

A business cannot deduct the premiums for key person disability income insurance, but the benefits are received tax-free. The correct answer is: Premiums are not tax-deductible, but benefits are received tax-free.

Premiums for individual disability income policies are not tax-deductible, but benefits are received tax-free. The correct answer is: Premiums are paid with after-tax dollars.

When the cost of premiums is shared between the employer and employees, benefits are taxable based on the portion of premiums paid by the employer. The correct answer is: Benefits are taxable to employees based on the portion of premiums paid by Wild Bill.

Benefits for individual medical expense, LTC and Medigap policies are received tax-free. The correct answer is: Not taxable.

When the cost of premiums is shared between the employer and employees, benefits are taxable based on the portion of the premiums paid by the employer. The correct answer is: Benefits are taxable to employees based on the portion of the premiums paid by Stan.

As a general rule, if the premiums are tax-deductible, the benefits are taxed as income. The correct answer is: If premiums are tax-deductible, benefits are taxed as income.

When an employer pays all premiums for a group disability income policy, benefits are fully taxable to employees. The correct answer is: Taxable

Premiums for Medigap and LTC policies may be deducted from taxable income if the individual's unreimbursed medical expenses exceed 10% of their adjusted gross income. The correct answer is: Only tax-deductible if an individual's unreimbursed medical expenses exceed 10% of their adjusted gross income

When the employer pays the premiums for a group health insurance policy, the employer can tax-deduct the amount of premiums paid. Employees do not pay taxes on medical expense benefits received. The correct answer is: Premiums are tax-deductible to the employer and benefits are not taxable to the employees.

When the cost of premiums is shared between the employer and employees, benefits are taxable based on the portion of premiums paid by the employer. The correct answer is: Benefits are taxable to employees based on the portion of premiums paid by George.

Employer-paid premiums for a group disability income policy are tax-deductible to the employer as a business expense; therefore, benefits are taxable to the employees. The correct answer is: They are taxable.

Premiums for Medicare Part B premiums are treated just as any other medical expense inclusion as a deductible medical expense on a tax return. A person must itemize and medical expenses must exceed 10% of adjusted gross income before there is an allowable deduction. The correct answer is: The premiums for Medicare Part B are includable in overall medical expense for deduction subject to the 10% threshold for medical expense deduction.

Premiums paid for individually-owned disability income policies are not tax-deductible; however, disability income benefits are tax-free. The correct answer is: Premiums are paid with after-tax dollars and benefits are tax-free.

If the premiums are not tax-deductible, the benefits are tax-free, as long as they do not exceed the actual cost of medical expenses. The correct answer is: Tax-free, as long as they do not exceed the actual cost of medical expenses.

Premiums for Medigap and LTC policies may be deducted from taxable income if the individual's unreimbursed medical expenses exceed 10% of their adjusted gross income. The correct answer is: Only tax-deductible if an individual's unreimbursed medical expenses exceed 10% of their adjusted gross income.

As a general rule, if the premiums are tax-deductible, the benefits are taxed as income. The correct answer is: If premiums are tax-deductible, benefits are taxed as income.

When the employer pays the entire cost of group disability income premiums, benefits are 100% taxable to the employee. The correct answer is: Fully taxable

Premiums for individual disability income insurance are paid with after-tax dollars, but benefits are not considered taxable income. The correct answer is: Premiums cannot be deducted from taxes, but benefits are tax-free.

Premiums for Medigap and long-term care policies may be deducted from taxable income if the individual's unreimbursed medical expenses exceed 10% of their adjusted gross income. The correct answer is: Premiums are only tax-deductible if a person's unreimbursed medical expenses exceed 10% of their adjusted gross income.

In a contributory group disability income policy, the portion of benefits which correlate to the portion of employer-paid premiums is taxable. The correct answer is: 60%

Premiums paid for individually-owned disability income policies are not tax-deductible; however, disability income benefits are tax-free. The correct answer is: Individual disability income

Premiums for Medigap and long-term care policies may be deducted from taxable income if the individual_s unreimbursed medical expenses exceed 10% of their adjusted gross income. The correct answer is: Premiums are only tax-deductible if a person_s unreimbursed medical expenses exceed 10% of their adjusted gross income.

Premiums for disability income insurance policies paid by employers are tax-deductible as a business expense and are not taxed as income of the employee. Disability income benefits are not taxable if the employee makes the premium payments, but if the premiums are fully paid by the employer, then benefits are fully taxed as the income of the employee. The correct answer is: Premiums paid by the employer are tax-deductible as a business expense.

Employer-paid premiums for a group disability income policy are tax-deductible to the employer as a business expense; therefore, benefits are taxable to the employees. The correct answer is: They are taxable.

If the premiums are not tax-deductible, the benefits are tax-free, as long as they do not exceed the actual cost of medical expenses. The correct answer is: Tax-free, as long as they do not exceed the actual cost of medical expenses.

Benefits for individual medical expense, long-term care and Medigap policies are received tax-free. The correct answer is: Benefits are not taxable.

Premiums for individual disability income insurance are paid with after-tax dollars, but benefits are not considered taxable income. The correct answer is: Premiums are not tax-deductible, but benefits are received tax-free.

Premiums paid for individually-owned disability income policies are not tax-deductible; however, disability income benefits are tax-free. The correct answer is: Premiums are paid with after-tax dollars and benefits are tax-free.

Sole proprietors can fully deduct their premiums for medical expense insurance as a business expense. Benefits are received tax-free. The correct answer is: Premiums are tax-deductible and benefits are received tax-free.