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 coverage in gross income using IRS tables.

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Under IRS rules, the cost of up to $50,000 of group term life insurance coverage provided by an employer is not included in an employee's gross income. Only the cost of coverage exceeding $50,000 is taxable and must be included in gross income.

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