Caroline Watts insurance premiums, specifically if she should have them deducted
ID: 2509343 • Letter: C
Question
Caroline Watts insurance premiums, specifically if she should have them deducted pre-tax or post-tax. is an employee of Lavender Creek Farm. She has come to you, the payroll accountant, for advice about her health Required: t reason(s) would you give her for having the medical premiums deducted on a pre-tax basis? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically greded as incorrect.) the box wit 2 All health insurance premiums must be deducted on a pre-tax basis 2 The employee's income that is subject to income taxles) ls reduced 2 The premium amounts are reduced by deducting them on a pre-tax basis The income subject to Social Security and Medicare taxes is reducedExplanation / Answer
Most of the Premiums are paid with Pre Tax Dollers , which meanes they are Deducted from your Wages before taxes are applied.Deducting them again as a Medicle expence would be "Double-Dipping"
you can only deduct the Premiums if only your Employer included them in Box 1 (Gross Wages) of your W-2 however this is highly unusual and contrary to the Standard Process
similarly HSA and MSA contributions that came out of your paycheck aren't deductable either,as these contributions are funded with pre-tax dollers