Free Federal Tax Considerations Practice Questions
Maryland Accident & Health exam — 46 practice questions.
Subtopics: Maryland LTC tax credit, Employer LTC tax credit, 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. A Maryland resident may claim a one-time State income tax credit for long-term care premiums paid for an eligible insured of up to:
$500 per insured
The credit equals 100% of eligible LTC premiums up to $500 per insured, may be claimed only once for each insured, and is not available if the insured had LTC coverage before July 1, 2000.
2. A Maryland employer that provides long-term care insurance as an employee benefit may claim a State tax credit equal to 5% of its costs, up to the lesser of $5,000 or:
$100 per covered employee
The employer credit is 5% of costs to provide LTC insurance, capped at the lesser of $5,000 or $100 per Maryland employee covered.
3. 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.
4. Medical expense benefits an insured receives that reimburse covered health costs are generally:
Received income-tax-free
Benefits reimbursing medical expenses are generally received income-tax-free.
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.
