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Federal Tax practice test
Terms in this set (10)
Which of the following determines where insurance benefits are taxed?
A. Sub-Contract provisions
B. State statutes
C. Contract provisions
D. If the premiums were or were not taxed
If the premium were or were not taxed
Concerning group Medical & Dental insurance, which of the following statements is incorrect?
A. Premiums paid by the employer are deductible as a business expense
B. Employee benefits are tax deductible the year in which they were received
C. Benefits received by the employee are free from federal income tax
D. Employee paid premiums may be deducted if certain conditions are met
Employee benefits are tax deductible the year in which they were received
Group AD&D premiums are?
A. Deductible to the employer as a business expense
B. Not deductible to the employer
C. Fully contributory
D. Partially deductible to the employer
Deductible to the employer as a business expense
Which of the following is not true regarding benefits paid to disabled employees?
A. There subject to FICA w/holding for Social Security
B. The benefits are attributable to the employer
C. There exempt from the Social Security tax after 12 months
D. Tax w/holding is required for the first 6 months
There exempt from the Social Security tax after 12 months
Which benefits are subject to FICA w/holding for Social Security purposes?
A. Benefits paid to most qualified disabled employers
B. Benefits paid to unqualified employees
C. Benefits paid to disabled employees, which are attributed to the employer's contribution
D. Benefits paid to unqualified employers
Benefits paid to disabled employees, which are attributed to the employer's contribution
Under what type of policy would excessive benefits paid, possibly be taxable as ordinary income to the insured?
A. Long Term Care
B. Indemnity Plan
C. Group Disability
D. Social Security
Long Term Care
Under a key person disability income policy, premium payments?
A. Made by the employee, not tax deductible
B. Made by the business, are tax deductible
C. Made by the employee, tax free
D. Made by the business, not tax deductible
Made by the business, are tax deductible
In an individual LTC plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
A. Income tax
B. Premium tax
C. All taxes
D. No tax
For group medical & dental expensed insurance, what % of the premium paid by the employer is deductible as a business expense?
Which of the following is not correct concerning taxation of D/I benefits?
A. If the benefits are for a permanent
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