Insurance
The most frequently asked tax questions related to Insurance
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Answer Tax QuestionsWhat is an Annuity ?
Asked Tuesday, October 31, 2000 by an anonymous user
An annuity is a contract between an insurance company and an individual whereby the insurance company agrees to make periodic payments to the individual for a certain period or for the life of the individual. Generally, a fixed annuity may be right for you if you want to supplement pension and other qualified retirement plan contributions or you want the benefits of tax deferred accumulation or you want to provide a lifelong income for a family member such as a disabled child, regardless of age or you value safety without management worries.
Are the medical insurance payments that my husband's former employer is paying for me as a surviving spouse taxable to me?
Asked Monday, October 30, 2000 by an anonymous user
No. The medical insurance payments that your husband's former employer is paying for you as a surviving spouse is not taxable to you. It is considered as atreatment as a continuation of your husband's tax free fringe benefit package.
Insurance premiums - paid by employer
Asked Monday, October 30, 2000 by an anonymous user
No. You are not taxes on the amount of the insurance premiums for health, accidents or hospitalization paid by your employer for you your spouse or your dependents.
Former employer - Cobra denial
Asked Monday, October 30, 2000 by an anonymous user
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 cannot 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.
If your former employer had more than 20 employees on a typical day then your former employer cannot 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 coverage - disabled persons
Asked Monday, October 30, 2000 by an anonymous user
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.
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 user
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 user
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.
What is a Reverse Mortgage ?
Asked Tuesday, October 24, 2000 by an anonymous user
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
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.