Homer Tanner, a foreman at Wellville Steel, pays the premium…

Questions

Hоmer Tаnner, а fоremаn at Wellville Steel, pays the premium fоr a long-term disability policy that has a three-month waiting period and replaces 70% of pay. Homer suffered brain damage in an auto accident. Full recovery took nine months. Six months after the accident, Homer was able to return to work on a part-time basis. Still very unsteady on his feet, Homer oversaw just one section of the production line while in a wheelchair. Homer's long-term disability payments ceased when he went back to work. Which of the following is true?(I)Homer's long-term disability payments were taxed as ordinary income(II)Homer's long-term disability payments were tax-free(III)the definition of disability in his long-term disability policy was "own occupation"(IV)the definition of disability in his long-term disability policy was "qualified for"(V)the definition of disability in his long-term disability policy was "total and permanent"

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