Asked by Aiysha Edwards on Jul 20, 2024
Verified
Teresa has a dental plan through her employer.Recently,she has undergone dental work costing the plan $2,500.Luckily for Teresa,this particular dental work was covered completely by her dental plan.What are the tax consequences as a result of Teresa not having to pay for the dental work?
A) Her employer will add the $2,500 as an expense in their income statement.
B) She will have to include the $2,500 as additional income.
C) There are no tax consequences at all as benefits are tax-free.
D) Teresa will have to claim half of the benefit as income.
Dental Plan
A type of health insurance that covers a portion of the costs associated with dental care, including preventative services, treatments, and surgeries.
Tax Consequences
Refers to the fiscal impact of business decisions or personal actions on one's taxable income and liability.
Income Statement
A financial document that summarizes a company's revenue, expenses, and profits over a specific period, providing insight into its financial performance.
- Assess the fiscal consequences and procedural aspects of benefit schemes.
Verified Answer
Learning Objectives
- Assess the fiscal consequences and procedural aspects of benefit schemes.
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