Taxes on Group Life Insurance

[onefastpony]

What are the tax implications of a group life policy paying to a beneficiary? Does the beneficiary have to pay income tax on the death benefit if it's over 50K or do they receive all of it tax free?

 

[Larry Tew]

The beneficiary wouldn't pay income tax, but the insured would likely be paying income tax on the "economic benefit" of the coverage in excess of 50k. It's based on the PS58 Table unless they changed it.

 

[kgmom219]

What are the tax implications of a group life policy paying to a beneficiary? Does the beneficiary have to pay income tax on the death benefit if it's over 50K or do they receive all of it tax free?

The correct answer to this (and any other tax question):

"I am fabulous at insurance. However, I am not a CPA and can't even play one on TV. I always direct tax questions to your CPA"

 

[DHK]

Please see Tutorial on nologist on group life

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Group life policies on employee spouse or dependents can cause tax liability Please see Tutorial on-topic at ww.nologist.com group you can access the article directly at https://www.nologist.com/all-topics...rials/group-life-insurance-policies-explained.

I don't think you should be giving any kind of advice of any kind.

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