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What type of income is group term life insurance, when doing an income tax return?

There are so many types of income, but under which one does it go? -Delinda

Tags: Group Insurance, Group Term Life, Group Term Life Insurance, Income Tax Return, Term Insurance

This entry was posted on Tuesday, December 9th, 2008 at 5:02 am and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “What type of income is group term life insurance, when doing an income tax return?”

1. newjerseyguy Says:
   December 12th, 2008 at 3:32 pm

   Please clarify – are you saying that you received life insurance proceeds from someone’s death or are you asking if term life insurance premiums that you pay are tax deductible?

2. Hank Roitman, EA Says:
   December 14th, 2008 at 11:00 pm

   If you are referring to code “c” in box 12 of form W-2, it is the cost of group term life insurance in excess of $50,000 of coverage, paid for by the employer. In other words, employers can provide ins. up to $50k; over that and the cost is included in the employee’s income.

   The code “C” amount is already included in boxes 1,3& 5 of form W-2 because it is treated as “compensation”, ie wage or salary.

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