Group Term Life Insurance – IRS Table

The following table represents the amount which must be added to income when an employer provided Life Insurance policy has a benefit value of greater than $50,000.  For each extra $1,000 above $50,000 you would calculate an amount using the chart below and multiply by the number of months the benefit was provided (usually 12 months).

Cost Per $1,000 of group term Life Insurance protection for 1-Month Period.

[Reg. 1.79-3(d)(2)] 

For example, a 47-year-old pastor who receives a non-taxable life insurance policy of $100,000 for the entire year would have $90 added to his W-2, block 1 (and block 12 of his w-2 would show code “c” and 90).


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