- 25 -
SEC. 105. AMOUNTS RECEIVED UNDER ACCIDENT AND HEALTH
PLANS.
* * * * * * *
(b) Amounts Expended for Medical Care.–-
* * * gross income does not include amounts
referred to in subsection (a)[29] if such
amounts are paid, directly or indirectly, to
the taxpayer to reimburse the taxpayer for
expenses incurred by him for the medical care
(as defined in section 213(d)) of the tax-
payer, his spouse, and his dependents
* * *.[30] [Emphasis added.]
Section 105(b) excludes from gross income amounts referred to in
section 105(a) that an employer pays, directly or indirectly, to
an employee in order to reimburse the employee for expenses for
the medical care, as defined in section 213(d), of not only the
employee, but also the employee’s spouse and dependents.
During the years at issue, pursuant to the AgriPlan/AgriBiz
medical reimbursement plan, Mr. Frahm, as Ms. Frahm’s employer,
29Sec. 105(a) provides:
(a) Amounts Attributable to Employer
Contributions.--Except as otherwise provided in this
section, amounts received by an employee through acci-
dent or health insurance for personal injuries or
sickness shall be included in gross income to the
extent such amounts (1) are attributable to contribu-
tions by the employer which were not includible in the
gross income of the employee, or (2) are paid by the
employer.
30For purposes of sec. 105(b), expenses for medical care
include amounts paid as premiums for insurance covering medical
care referred to in sec. 213(d)(1)(A) and (B) and for any quali-
fied long-term care insurance contract as defined in sec.
7702B(b). Sec. 213(d)(1)(D).
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: March 27, 2008