If an employee earns $40,000 in annual income and her employer pays $10,000 in premiums for her group health insurance coverage, on what amount of total income will the employee be taxed when filing her annual tax return?

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If an employee earns $40,000 in annual income and her employer pays $10,000 in premiums for her group health insurance coverage, the employee would only be taxed on her gross income amount of $40,000. This is because the $10,000 that the employer pays for her group health insurance coverage is not considered income to the employee. In addition, the employer may deduct the $10,000 in premiums paid as a business expense.

If an Employee Earns $40,000 in Annual Income and Her