If Isaac has a $500 deductible and receives medical benefits while enrolled in a non-contributory group plan, how much of his benefits will be taxed?

Medical benefits received from a non-contributory group health insurance plan are generally not taxable to the recipient. In a non-contributory plan, the employer pays the entire premium for the insurance, and employees do not contribute. Because of this, when Isaac receives medical benefits from such a plan, those benefits are typically excluded from taxable income.

This means that regardless of how much he benefits from the plan or the deductible amount he has to satisfy, the benefits themselves are not considered taxable income. Any reimbursements or payments made under this plan do not generate a tax liability for Isaac, making this the correct interpretation of how benefits are treated in this scenario.