Steve is the librarian in his city's library. The library provides group diability insurance where premiums are paid by employees with after-tax dollars. He enrolls in a policy through the employer that provides a benefit of $4,200 a month. If he is in the 25% tax bracket and is disabled, what are his benefits after tax?

a. $0.
b. $1,050.
c. $3,150.
d. $4,200.

Q&A Education