Tax Treatment of Sickness and Injury Plans (Course Id 430)

Taxes - Taxes for Course Id 430

Health insurance is so central to the health and well-being of people that it may be hard for many Americans to believe it could ever have been a less important factor in helping to promote good health than it is today. In fact, health insurance as it is recognized today is a relatively recent development.

Since the early development of health insurance coverage, many changes have occurred in the manner in which health care services are delivered and paid for. Among those changes is the emergence of various tax-favored health plans. This course will examine many of those tax-favored health plans.  

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 430

Course Learning Objectives

• Identify the tax treatment of premiums for and benefits from health insurance policies;
  
• Apply the rules governing health savings accounts and Archer medical savings accounts;
  
• Recognize the tax treatment of health reimbursement accounts;
  
• Compare the tax treatment of employer-paid and individually-paid disability income insurance policies;
  
• Apply the tax rules governing business-related disability coverage; and
  
• Identify the tax treatment of long term care insurance.

Chapter 1
Health Insurance

• Identify the tax treatment of personally-owned health insurance premiums and benefits;
  
• Compare the tax treatment of personally-owned health insurance premiums paid by self-employed taxpayers and taxpayers who are not self-employed; and
  
• Apply the rules governing the tax treatment of employer-paid health insurance premiums and benefits.

Chapter 2
Tax-Favored Health Plans

• Identify the tax treatment given to -
  o Archer Medical Savings Accounts,
  o Health Savings Accounts, and
  o Health Reimbursement Arrangements; and
• Calculate the contributions that may be made to –
  o Archer Medical Savings Accounts, and
  o Health Savings Accounts.

Chapter 3
Disability and Long Term Care Insurance Coverage

• Compare the tax treatment of premiums for and benefits paid under individually-paid and employer-paid disability income policies;
  
• Identify the tax treatment of premiums for and benefits paid under various business-related disability policies; and
  
• Apply the tax rules to long term care premiums and benefits.

Course Learning Objectives

Introduction

Chapter 1 - Health Insurance

Chapter Learning Objectives

Overview of the Development of U.S. Health Insurance

Health Insurance Coverage

Personally-owned Health Insurance

Personally-owned Health Insurance Benefits Generally Tax-Exempt

Personally-owned Health Insurance Premiums may be Deductible subject to AGI Limitation

Health Insurance Premiums for Partners and Self-employed not subject to AGI Limitation

Certain Premiums Non-Deductible

Employer-Paid Health Insurance

Employer-Paid Health Insurance Benefits Generally Tax-Exempt

Certain Benefits under Employer-provided Health Insurance Includible in Income

Employer Health Insurance Premiums for Employee Coverage Generally Deductible

Employer-Paid Health Insurance Premiums not Includible in Employees’ Income

Patient Protection and Affordable Care Act

Individual Requirement to Maintain Health Coverage

Penalty for Failure to Maintain Health Coverage

Refundable Tax Credits to Assist in Purchase of Qualified Health Plan

Eligibility for Credit

Small Employer Health Insurance Premium Credit

Large Employer Shared Responsibility

Penalty for Non-Compliance

Employers Not Offering Coverage

Employers Offering Coverage

Medicaid Expansion Option may affect Employer Penalties

Summary

Chapter Review

Chapter 2 - Tax-Favored Health Plans

Chapter Learning Objectives

Introduction

Medical Savings Accounts

Archer MSA Benefits

Archer MSA Eligibility

Archer MSA Pilot Program Ended

High Deductible Health Plan Requirement

Archer MSA Contributions

Penalty for Excess Contributions

Special Rules for Employer-Installed MSAs

Archer MSA Distributions

Archer MSA Rollovers

Account Transfer Incident to Divorce

Account Transfer at Death

Archer MSA Tax Treatment

Contribution Tax Treatment

Distribution Tax Treatment

Tax-Free Archer MSA Distributions

Taxable Archer MSA Distributions

Deemed Archer MSA Taxable Distributions

Archer MSA Distribution Tax Penalty

Health Savings Accounts

HSA Benefits

HSA Eligibility

HSA High Deductible Health Plan Requirement

HSA Contributions

HSA Contributions from Multiple Sources

Additional Contributions for Age 55 and Older Account Holders

First-Year Contributions for New Account Holders

Maximum HSA Contributions may be Reduced

Qualified HSA Funding Distributions Reduce Contribution Limits

Qualified HSA Funding Distribution Testing Period

Penalty for Excess Contributions

Employer HSA Participation

HSA Distributions

HSA Rollovers

Account Transfer Incident to Divorce

Account Transfer at Death

HSA Tax Treatment

Contribution Tax Treatment

Distribution Tax Treatment

Tax-Free HSA Distributions

Deemed HSA Taxable Distributions

Taxable HSA Distributions

HSA Distribution Tax Penalty

Health Reimbursement Arrangements

HRA Benefits

HRA Eligibility

HRA Contributions

HRA Distributions

HRA Distributions for other than Qualified Medical Expenses

HRA Distributions Paid to a Highly Compensated Individual

Non-discriminatory Eligibility

Non-discriminatory Benefits

Qualified HSA Distribution

Summary

Chapter Review

Chapter 3 - Disability and Long Term Care Insurance Coverage

Chapter Learning Objectives

Introduction

Disability Income Policies

Individually-Paid Policies

Employer-Paid Policies

Business-Related Disability Coverage

Overhead Expense Policies

Disability Buyout & Keyperson Policies

Qualified Long Term Care Insurance Policies

Favorable Tax Treatment only for Chronically-Ill

Qualified Long Term Care Premiums Deductible within Limits

Qualified Long Term Care Benefits Tax-Free within Limits

Tax Treatment of Nonqualified Long Term Care Insurance Policies

Summary

Chapter Review

Glossary