Employer-paid premiums for qualified long-term care insurance are:
A.
Included in an employee's gross income
B.
Deductible as a business expense
C.
Deductible on an employee's federal income tax return
D.
Reimbursed by the employee
The Answer Is:
B
Want to know why?
Explanation:
Premiums paid by employers for qualified long-term care insurance are tax-deductible as a business expense. For employees, the value of employer-paid premiums is excluded from gross income. This aligns with federal tax treatment and is covered in Virginia’s insurance exam outline.
Exact Extract (Virginia Insurance Study Guide): “Employer contributions to qualified long-term care insurance premiums are deductible to the employer as a business expense and not taxable to the employee.”
References (Virginia Documents / Study Guide):
— Virginia Life & Health Insurance Examination Outline, Section 6.2 Tax treatment of long-term care insurance
