Question

the following is a true statement about the tax consequences of employer-provided health insurance: a. premiums paid by the employer are excluded from the employee's income, but payments received to reimburse medical expenses from the health plan are includible in income. b. premiums paid by the employer are included in the employee's income as compensation, but payments received to reimburse medical expenses from an employer-provided health plan are excluded. c. premiums paid by the employer are excluded from the employee's income, and payments received to reimburse medical expenses from an employer-provided health plan are excluded. d. neither premiums nor medical expense reimbursement are excludable.

Answer 1

The correct answer is c. premiums paid by the employer are excluded from the employee's income, and payments received to reimburse medical expenses from an employer-provided health plan are excluded. Therefore, the correct option is C.

Step-by-step explanation:

The correct answer is c. premiums paid by the employer are excluded from the employee's income, and payments received to reimburse medical expenses from an employer-provided health plan are excluded.

Employer-provided health insurance is generally considered a non-taxable benefit. The premiums paid by the employer are not included in the employee's income. Additionally, any payments received from the health plan to reimburse medical expenses are also excluded from the employee's income.