Teresa Has a Dental Plan Through Her Employer

question 8

Multiple Choice

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 $2,500.00 as an expense in their income statement.
• B) She will have to include the $2,500.00 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.

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Definitions:

Light Beam

A stream of light particles (photons) traveling in the same direction, used in various applications including communication and measurement.

Sensor

A device that detects or measures a physical property (such as temperature, light, pressure) and records, indicates, or otherwise responds to it.

Photoelectric Sensors

Devices that detect objects, changes in light intensity, or proximity by emitting and receiving light.