Frank received the following benefits from his employer this year.What amount must Frank include in his gross income? $\begin{array}{llcc}
\quad\quad\quad\quad \text {Benefits Received } &\text { Amount } \
\text {Salary } &\$54,450\
\text { Health insurance } &2,900\
\text { Group-term life insurance $ (\$ 50,000) $ } &1,800\
\end{array}$

Question

Frank received the following benefits from his employer this year.What amount must Frank include in his gross income? $\begin{array}{llcc}
 \quad\quad\quad\quad \text {Benefits Received  } &\text { Amount }  \
 \text {Salary  } &\$54,450\
 \text { Health insurance } &2,900\
 \text { Group-term life insurance $ (\$ 50,000) $  } &1,800\
\end{array}$

Quizplus · Accepted Answer

The correct answer is the salary amount of $54,450. Health insurance provided by an employer is generally not taxable income for the employee. Similarly, the cost of up to $50,000 of group-term life insurance provided by an employer is also excluded from the employee's gross income. Therefore, only the salary is included in Frank's gross income.

Frank Received the Following Benefits from His Employer This Year