George is 34 years old. His employer provides him with $200,000 of group term life insurance as a fringe benefit. The policy costs his employer $25 per month. The amount from the table for group term life insurance premiums is $0.08. How much income does George have for the year if?

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B  CThe cost of the first $50,000 of coverage is not taxable. For the remaining $150,000, the taxable amount is calculated using the IRS table rate of $0.08 per $1,000 of coverage per month. This results in $144 taxable income for the year ($0.08 x 150 x 12). Since the benefit is provided on a nondiscriminatory basis or George is not a key employee, only this amount is taxable. If George is a key employee and the benefit discriminates, the entire $200,000 coverage is taxable, but the question does not specify this scenario's calculation.

George Is 34 Years Old