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Ben Was Hospitalized for Back Problems

question 45

Essay

Ben was hospitalized for back problems. While he was away from the job, he collected his regular salary from an employer-sponsored income protection insurance policy. Ben's employer-sponsored hospitalization insurance policy also paid for 90% of his medical expenses. Ben also collected on an income protection policy that he purchased. Which of the above sources of income are taxable? Explain the basis for excluding any item or items.


Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Social Security System

A government program that provides financial assistance to people with insufficient or no income, typically covering the elderly, disabled, and unemployed.

Unemployment Compensation

A state government transfer program that pays cash benefits for a certain period of time to laid-off workers who have worked for a specified period of time for a covered employer.

Assistance Program

A governmental or organizational initiative designed to provide support, financial or otherwise, to individuals or groups in need.

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