Marco and his family are covered by his company's health insurance plan. The health insurance costs his company $2,500 a year. During the year, Marco's daughter is diagnosed with a serious illness and the health insurance pays $25,000 for treatment. How much of the insurance and treatment costs are taxable to Marco?

None of the cost of the family insurance or amounts paid by the insurance company for treatment are taxable to Marco. These amounts are specifically excluded from taxable income under the tax law.