Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Steve is the librarian in his city's library. The library provides group diability insurance where premiums are paid by employees with after-tax dollars. He enrolls in a policy through the employer that provides a benefit of $4,200 a month. If he is in the 25% tax bracket and is disabled, what are his benefits after tax?

a. $0.
b. $1,050.
c. $3,150.
d. $4,200.

Sagot :

Answer: $4200

Explanation:

Tax benefit refers to the reduction in the tax liability which is enjoyed by an individual and helps the individual reduce his or her tax burden.

Since we are already given the information that Steve enrolls in a policy through the employer that provides a benefit of $4,200 a month, then his benefits after tax is $4200.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.