Mattie has group term life insurance coverage of $120,000 provided by her employer on a nondiscriminatory basis.She must include premiums for $120,000 of coverage in gross income,determined by using IRS tables.

Question

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Mattie only needs to include the cost of coverage over $50,000 in her gross income, as per IRS rules. The first $50,000 of employer-provided group term life insurance is excluded from income.

Mattie Has Group Term Life Insurance Coverage of $120,000 Provided