Free Federal Tax Considerations Practice Questions
South Carolina Accident & Health exam — 46 practice questions.
Subtopics: Employer health premiums, Employer-paid DI benefits, Group medical premiums, Medical benefits taxation, Individual DI benefits, Business overhead expense tax, Key person health premiums, Health Savings Account, Flexible Spending Account, Health Reimbursement Arrangement, Self-employed health deduction, HSA tax advantages, HSA nonqualified distribution, Medical expense itemized deduction, Archer Medical Savings Account, Premium-only plan, AD&D benefit taxation, Long-term care premium deduction, Critical illness benefit taxation, Individual health premium deductibility, Employer HSA contribution, Group medical, Group disability, Personal disability, Business disability, Sole proprietors, HSA, FSA, HRA, LTC tax, Medical expense deduction, Group AD&D, Dependent care, Premium tax credit, Small business credit
Read the Federal Tax Considerations study guide
Sample questions & answers
1. Employer-paid premiums for an employee's group accident and health coverage are, for the employee:
Excluded from gross income
IRC Section 106(a) provides that gross income of an employee does not include employer-provided coverage under an accident or health plan.
2. An employer pays the entire premium for group disability income coverage and does not include it in the employee's income. Disability benefits the employee receives are generally:
Taxable income to the employee
IRC Section 104(a)(3) excludes A&H benefits except amounts attributable to employer contributions not included in the employee's income or paid by the employer.
3. Employer-paid premiums for group medical insurance are generally:
Deductible to employer, not taxable to employee
Employer contributions for group health are a deductible business expense and are not taxable income to employees.
4. Medical expense benefits an insured receives that reimburse covered health costs are generally:
Received income-tax-free
Benefits reimbursing medical expenses are generally received income-tax-free.
Practice: Federal Tax Considerations
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
