Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Is non-contributory life insurance over $50,000 a taxable item?

April 26, 2017Life Insurance non-contributory taxable

0

Posted

Is non-contributory life insurance over $50,000 a taxable item?

1 Answer

0

Posted

A. The Internal Revenue Service classifies all life insurance coverage over $50,000 as a fringe benefit subject to taxation. The amount of life insurance coverage is not taxable but rather the premium required to pay for the life insurance coverage is taxable. (Non-contributory Group Life Insurance applies to employees in Police and Fireman Retirement System and the Alternate Benefit Plan). For additional information contact Newark Human Resources at 973-353-5500.