V requires care in a nursing home, and his LTC policy pays the expenses associated with that care. Which of the following statements is NOT correct about the tax treatment of benefits V receives?

a. V must pay income tax on benefits he receives through his policy that exceed actual expenses he incurs at the nursing facility.

b. V must pay income tax on any benefits the insurer pays under his policy.

c. V does not need to pay FICA tax on benefits he receives from his LTC policy.

d. V does not need to pay income tax on benefits he receives, whether it is he himself or his employer who paid the policy premiums.

Answer: B

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