Is Group Term Life Insurance Taxable at Life

Is Group Term Life Insurance Taxable. Cost of his life insurance as per table 1. Group term life insurance is considered to be carried by an employer where part of the premium for one employee actually comes from excess contributions of other employees.

The entire amount is taxable, not just the amount that exceeds $2,000. This means that there are no tax consequences if the coverage does not exceed $50,000. Is group term life insurance taxable?

Denise M. Collins Towne Investment Group

According to internal revenue service (irs) code section 79, the cost of any coverage over. Taxation of group term life insurance summary generally, anything that an employee receives from his or her employer as compensation, including fringe benefits such as life insurance, is included in the employee’s gross income unless a specific internal revenue code (code) exclusion applies. People ask , is group term life insurance taxable for federal income tax? The entire amount is taxable, not just the amount that exceeds $2,000.