Federal Tax Considerations for Accident and Health
Disibility
Premiums paid by employer are collected by the are deductible and taxable to employee who receives benefits
Long-Term Care Insurance
if employer pays costs are deductible to employer as business deduction and not taxable to employer. Benefits received are not taxable as income as long as they meet federal guidelines
Flexible Spending
is pre-tax money and thus benefits received are income tax free
Group AD&D
premiums for employers are deductible as business expense and not taxable to employee income
Sole Proprietors AD&D
premiums fully tax deductible to business
Individual AD&D
premiums non-taxable and any benefits collected are income tax free
Individual Medical Expense
premiums not tax deductible from income. may qualify for itemized deduction for un-reimbursement medical expense if expenses exceed 7 1/2% of adjusted gross income
Business Overhead Expense
premiums tax deductible as business expense and thus benefit, when received, is taxable