Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Which of the following is a false statement regarding a Flexible Spending Account (FSA) (also known as a flexible spending arrangement)?
A. The taxpayer does not have to pay taxes on money put into an FSA that he or she uses to pay for certain out-of-pocket health care costs
B. The taxpayer can use funds in his or her FSA to pay for copayments and deductibles
C. The taxpayer can use FSA funds to pay for insurance premiums
D. Employers may make contributions to the taxpayer’s FSA

Sagot :

Parrain

Answer: C. The taxpayer can use FSA funds to pay for insurance premiums

Explanation:

The Flexible Spending Account (FSA) is very useful as it provides reimbursement for certain out-of-pocket health care cost and is not taxable saves people money.

However, even though FSA funds can be used to pay off deductibles and co-payments, taxpayers are not allowed to use it to pay insurance premiums.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.