Health Care
The most frequently asked tax questions related to Health Care
Former employer- COBRA denial
Asked Monday, October 30, 2000 by an anonymous userCPA Answer:
Continuing coverage rules apply to small employers who in the previous calendar year had more than 20 employees on a typical day. If your former employer had more than 20 employees on a typical day then your former employer can not deny you COBRA coverage because your wife has a group health plan.
COBRA is continuing coverage for health plans that is offered a employee upon his or her leaving a company.
Usually the COBRA coverage can last up to 18 months. Generally, The cost of the COBRA coverage will be paid by the employee.
COBRA is continuing coverage for health plans that is offered a employee upon his or her leaving a company.
Usually the COBRA coverage can last up to 18 months. Generally, The cost of the COBRA coverage will be paid by the employee.
COBRA coverage - disabled persons
Asked Monday, October 30, 2000 by an anonymous userCPA Answer:
Generally, the COBRA coverage for disabled persons is extended from 18 months to 29 months. The coverage may be as much as 150% of the applicable premium for the disabled individual.
How long is the COBRA coverage for a survivibg spouse ?
Asked Monday, October 30, 2000 by an anonymous userCPA Answer:
Generally, The surviving spouse and dependent children of a covered employee who are beneficiaries under the husbands plan on the date of death will be covered for 36 months.
Is the payment I received from my work injury in which I lost the use of my hand taxable to me ?
Asked Monday, October 30, 2000 by an anonymous userCPA Answer:
The employer's payment you received for permanent loss of use to your hand is tax free if if the payment is based solely on the nature of the injury.
Is the amount of my health care flexible spending account that I did not use get carried forward to next year ?
Asked Monday, October 30, 2000 by an anonymous userCPA Answer:
A flexible spending account allows employees to get reimbursed for medical or dependent care expenses from an account they set up with pre tax dollars. A use it or lose it rule applies. Any amount not used in the current year is lost and not carried over to the following year.
Nursing home costs
Asked Tuesday, October 24, 2000 by an anonymous userCPA Answer:
Nursing home costs, including meals and lodging, are deductible as a medical itemized deduction, subject to the 10% / 7.5 AGI limitation on IRS Schedule A as long as the main reason for being in the home is to obtain medical care.
If the reason for entering the nursing home is not primarily to obtain medical care, then only the portion spent on medical treatment is deductible.
If the reason for entering the nursing home is not primarily to obtain medical care, then only the portion spent on medical treatment is deductible.
What is a Reverse Mortgage ?
Asked Tuesday, October 24, 2000 by an anonymous userCPA Answer:
A reverse mortgage is used to convert home equity into cash. Payments take the form of a lump sum, line of credit or monthly payments over a specified number of years or over the life of the borrower. The amount being drawn is from the borrower's principal and considered tax-free and will not affect the taxability of Social Security benefits. Generally, the homeowner borrower must be age 65 or older and the residence must be close to being totally paid off. To view a reverse mortgage calculation schedule you can go to: http://www.reverse.org/help.calculator.htm
Psychologist payments
Asked Monday, October 23, 2000 by an anonymous userCPA Answer:
Payments to psychiatrists, psychologists, medical doctors, dentists, eye doctors, chiropractors, physical or occupational therapists, acupuncturists and medical care psychoanalysts, are itemized deductions subject to your 10% / 7.5% AGI limitation on IRS Schedule A.
Chiropractor payments
Asked Monday, October 23, 2000 by an anonymous userCPA Answer:
Payments to psychiatrists, psychologists, medical doctors, dentists, eye doctors, chiropractors, physical or occupational therapists, acupuncturists and medical care psychoanalysts, are itemized deductions subject to your 10% / 7.5% AGI limitation on IRS Schedule A.