Free Federal Tax Considerations Practice Questions
Arizona Accident & Health exam (series 13-32) — 47 practice questions.
Subtopics: Individual DI taxation, Employer health premiums, HSA eligibility, Group medical premiums, Medical benefits taxation, Individual DI benefits, Employer-paid DI benefits, Business overhead expense tax, Key person health premiums, Health Savings Account, Flexible Spending Account, Health Reimbursement Arrangement, Self-employed health deduction, HSA tax advantages, HSA nonqualified distribution, Medical expense itemized deduction, Archer Medical Savings Account, Premium-only plan, AD&D benefit taxation, Long-term care premium deduction, Critical illness benefit taxation, Individual health premium deductibility, Employer HSA contribution, Group medical, Group disability, Personal disability, Business disability, Sole proprietors, HSA, FSA, HRA, LTC tax, Medical expense deduction, Group AD&D, Dependent care, Premium tax credit, Small business credit
Read the Federal Tax Considerations study guide
Sample questions & answers
1. Benefits from an individual disability income policy whose premiums the insured paid with after-tax dollars are:
Received free of income tax
26 U.S.C. 104(a)(3) excludes amounts received through accident or health insurance for personal injuries or sickness, other than amounts attributable to employer contributions not included in income.
2. Employer contributions to an employee's accident and health plan are:
Excluded from the employee's gross income
26 U.S.C. 106(a) excludes employer-provided coverage under an accident or health plan from the employee's gross income.
3. Which person is NOT eligible to contribute to a health savings account?
A person entitled to Medicare
26 U.S.C. 223(b)(7) reduces the contribution limit to zero for an individual entitled to Medicare benefits.
4. Employer-paid premiums for group medical insurance are generally:
Deductible to employer, not taxable to employee
Employer contributions for group health are a deductible business expense and are not taxable income to employees.
Practice: Federal Tax Considerations
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
