My Company Provides Group Term Life Insurance. I Receive 200,000 Of Coverage For The Yr At A Cost To The?
Posted June 1, 2009 – 4:51 am in: term life insurancecompany of 2,800/ the uniform premiums are $8 a yr for 1,000 protection. how much do i need to include in gross income this yr??
Tags: 200000, Company, Cost, Coverage, Group, Insurance, Life, Provides, Receive, Term
5 Comments
When the company provides benefits, these benefits are not taxable to you@
I think some of the other answers are missing your question. Group term life insurance, when provided by the company, is taxable when the coverage exceeds $50,000. The taxable portion is calculated using an IRS table that takes your age into consideration. Your employer has to add the resulting amount to your paycheck, because it is taxable for social security purposes. It should already be on your W-2 in box 1 and then separately stated in box 12 as a memo item with the code “C”. Long story short, you shouldn’t need to “add” anything in for your gross income; it already should be included by your company in box 1. Best of luck!
200 X 8.00 == 1600.00
$1,200. $50,000 of term insurance is a tax free item. After that the premium is income.
The general rule of thumb is that you need to have 10X your annual salary in insurance. Also you should not have all your insurance coverage through your employer, what happens if you quit or get fired. 10-15 yr level term, do not fall for the other cash back or investment type of insurances.