Employer Life Insurance – Did You Know?

If your employer provides you with life insurance and is paying the premiums for you there is no tax concern so long as the amount of coverage is $50,000 or less.

However, premiums paid by your employer in excess of $50,000 is a taxable benefit under an employer-provided group term life insurance program. As result, this is considered income that may be taxed and should be included in your filing.