Which of the following guidelines does the IRS use to evaluate the tax treatment of supplemental health insurance?
A) If the income derived is taxable,then the cost is tax-free.
B) If the income derived is nontaxable,then the cost must be taxed.
C) If the income derived will be tax free,then the cost is also tax exempt.
D) If the income derived is taxable,then the cost is taxable.

Question

Quizplus · Accepted Answer

The IRS generally allows the cost of supplemental health insurance to be tax-exempt if the benefits received from the insurance are also tax-free.

Which of the Following Guidelines Does the IRS Use to Evaluate