Health Care
The most frequently asked tax questions related to Health Care
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Answer Tax QuestionsWhat is a ( Section 125 ) Cafeteria plan ?
Asked Tuesday, October 17, 2000 by an anonymous user
A Section 125 cafeteria plan is an employee benefit plan governed by the rules of Section 125 of the Internal Revenue Code. Cafeteria plan is a nickname for plans that give an employee a choice of selecting either cash or a qualifying, nontaxable benefit. Its purpose is to provide a method for allowing the employee to choose from a menu those benefits the employee desires to utilize. Generally, the benefits are fully or partially paid for by the employer. If the employee is required to pay for some or all of the benefits, they typically pay for them on a pre-tax basis.
What is the difference between Disability insurance and Worker's Compensation ?
Asked Tuesday, October 17, 2000 by an anonymous user
Generally, worker's compensation protects you if you are injured while performing your job. Disability insurance covers you for any injury or illness, whether it happens at home or on the job. If you work for an employer who provides you with disability insurance, you should assess exactly how much you are protected for to determine if additional coverage is warranted.
Is there a limit on the length of time that Social Security Disability benefits will last?
Asked Tuesday, October 17, 2000 by an anonymous user
Generally, there is no limit to the duration of Social Security disability benefits. If you qualify, you will keep collecting Social Security Disability benefits as long as your disability condition prevents you from working. The Social Security Administration will periodically review your case to see if there has been an improvement in your condition. If you are once again determined healthy enough to work, your benefits will stop. If you are still receiving benefits when you reach age 65, your disability benefit will be automatically converted to retirement benefits.
What is a split dollar insurance policy ?
Asked Tuesday, October 17, 2000 by an anonymous user
Split dollar insurance is not a type of insurance. It is an arrangement by which the premiums, cash values, and death benefits of a regular insurance policy are split by two or more participants. A split-dollar plan is a tool for an employer or owner of a small business to reward hard-working employees. By using a split-dollar plan, the owner can provide important key employees with life insurance protection and at the same time help them earn a fund to provide for additional retirement income.
What are the benefits of the Health Insurance Portability and Accountability Act ?
Asked Tuesday, October 17, 2000 by an anonymous user
The Health Insurance Portability and Accountability Act was created on July 1, 1997. It protects an insured person's insurability. Before this law, if an insured person lost insurance coverage they could be required to prove insurability before obtaining new coverage. Now, if a person has been insured for the past 12 months, a new insurance company can't refuse to cover that person and can't impose pre-existing conditions or a waiting period before providing coverage.
Travel to a pharmacy
Asked Tuesday, October 17, 2000 by an anonymous user
Transportation expenses for medical care and treatment are deductible medical expenses reportable as an itemized deduction on IRS Schedule A subject to the 10% / 7.5% limitation.
This includes trips to visit doctors, dentists, hospitals, and pharmacies. The expense must be primarily for, and essential to, medical care.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 24 cents per mile driven for medical or moving purposes.
This includes trips to visit doctors, dentists, hospitals, and pharmacies. The expense must be primarily for, and essential to, medical care.
The standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 24 cents per mile driven for medical or moving purposes.
Does the COBRA law apply to all companies that have twenty or more employees ?
Asked Monday, October 16, 2000 by an anonymous user
No. Some government, church and self-insured plans are exempt from the COBRA law, so be sure to check before assuming you can continue coverage.
Do I need life insurance?
Asked Saturday, October 14, 2000 by an anonymous user
Generally, if there are others that are financially dependent on you, then the answer is yes.
If you are married and/or have children, the insurance will help replace your lost income. It will also help prevent your family from selling assets to pay the bills. How much life insurance is dependent on many factors:
Your current income, your current mortgage and credit card bills, and your current and future educational needs.
Speak to your local CPA about your life insurance questions.
If you are married and/or have children, the insurance will help replace your lost income. It will also help prevent your family from selling assets to pay the bills. How much life insurance is dependent on many factors:
Your current income, your current mortgage and credit card bills, and your current and future educational needs.
Speak to your local CPA about your life insurance questions.
How can I lower the cost of life insurance ?
Asked Saturday, October 14, 2000 by an anonymous user
Most people believe that term life insurance is better than cash value life insurance. Insurance agents may make as much as 50% of the first year's commissions on a cash life insurance policy. Term life insurance can be about 10% of the cost of cash value life insurance. Term life insurance guarantees a lump sum payment specified within a specific period. Premiums usually increase with your age. Term policies usually are renewable at the end of the term. Cash value life insurance is insurance, plus an investment. Speak to your local CPA abount your insurance needs.
