Question

Gary participates in a group long-term care insurance program through his employer. The employer pays for a standard level of coverage for all employees, and Gary pays for an additional voluntary amount of coverage. In all, Gary's employer pays two thirds of the cost and Gary pays the remaining one third of the cost. If Gary makes a claim under this policy, what percentage of his benefits would be taxable based on the premium structure

Answer 1

$0

Step-by-step explanation:

When your employer pays for your health insurance policy, the benefits you receive are not taxed by the federal government. In most cases, when employees pay for some part of the health insurance plan, this payments are also excluded and not taxed by the federal government.

In this case, the benefits that Gary gets from his health insurance are not taxed by the federal government, only payments received for temporary disability or sickness are taxed since they replace your normal income.