Question

The exclusion for health insurance premiums paid by an employer applies to:

a. Only current employees and their spouses.
b. Only current employees and their spouses and dependents.
c. Only current employees and their disabled spouses.
d. Current employees, retired former employees, and their spouses and dependents.
e. None of these.

Answer 1

The exclusion for health insurance premiums paid by an employer applies to current employees, retired former employees, and their spouses and dependents.

Step-by-step explanation:

The exclusion for health insurance premiums paid by an employer applies to d. Current employees, retired former employees, and their spouses and dependents.

This means that the exclusion applies not only to current employees and their spouses, but also to retired former employees and their spouses and dependents.

For example, if a retired former employee is receiving health insurance premiums from their previous employer, those premiums would be excluded from their taxable income.