Based on IRS rules, if an individual is paying out-of-pocket for their employer group health insurance coverage under COBRA, then the premium amount is considered as __________ for tax purposes.
Explanation
Answer: A - Based on IRS rules, if an individual is paying out-of-pocket for their employer group health insurance coverage under COBRA, then the premium amount is considered as a medical expense for tax purposes. If these premiums, coupled with other medical expenses incurred by the individual, exceed 7.5 percent of their adjusted gross income, the premium amount may be tax deductible. If medical expenses plus the amount of insurance premiums are less than 7.5% of the individual's adjusted gross income, the individual will not be able to deduct any such expenses.
