That is a great question! Fortunately, if your coverage is less than $50,000, you do not have to do anything. If your coverage is more than that, whatever premium expense will have been included as wages earned on your W-2, and again you do not have to do anything. You can look on the back of your W-2 copies, on one of them it will explain, or you can go to www.irs.gov for more details. Thanks for asking!
If you are filing a 1040 tax form as an employee you do not have to add it to your taxes. On group life insurance that the employer is paying on your behalf is tax free on premiums of the first 50,000 face amount. Any excess premiums paid by your employer is included in your income on your W2. If your employer uses a 125 plan or cafeteria plan as they are commonly known, you are probably avoiding taxation through it as well. Again you need not do anything on your form 1040.
If you are the owner or employer of the company your group life insurance premiums are not tax deductible just your employees. It will not be added to your 1040 nor can it be deducted on your schedule C either.
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If you are the owner or employer of the company your group life insurance premiums are not tax deductible just your employees. It will not be added to your 1040 nor can it be deducted on your schedule C either.