Grace's employer is now offering group-termlife insurance. The company will provide each employee with $135.000 of group-term ifeInsurance. It costs Grace's employer $725 to provide this amount of insurance to Grace each year. Assuming that Grace is 57 years old, use thetable to determine the monthly premium that Grace must include in income as a result of receiving the group-term life benefit.EXHIBIT 12:08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection5-Year Age BracketUnder 25Cost per $1, e0e of Protection for one Month$0.0525 to 290.0630 to 340.080.090.100.1535 to 3940 to 4445 to 4950 to 5455 to 596e to 6465 to 690.230.430.661.272.0676 and above

Given, Insurance Coverage given by Employer = $135,000, Age = 57 years, Cost per $1,000 of…

Answered: Grace's employer is now offering…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 38P

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Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Tia is married and is employed by Carrera Auto Parts. In 2019, Carrera established high-deductible health insurance for all its employees. The plan has a 2,700 deductible for married taxpayers. Carrera also contributes 5 percent of each employees salary to a Health Savings Account. Tias salary is 30,000 in 2019 and 32,000 in 2020. Tia makes the maximum allowable contribution to her HSA in 2019 and 2020. She received 600 from the HSA for her 2019 medical expenses. In 2020, she spends 1,400 on medical expenses from her HSA. The MSA earns 28 in 2019 and 46 in 2020. a. What is the effect of the HSA transactions on Tias adjusted gross income? b. How much does Tia have in her HSA account at the end of 2020?
Grace's employer is now offering group-term life insurance. The company will provide each employee with $185,000 of group-term life insurance. It costs Grace's employer $875 to provide this amount of insurance to Grace each year. Assuming that Grace is 31 years old, use the tale to determine the monthly premium that Grace must inckude in income as a result of receiving the group-term life benefit. EXHIBIT 12-08 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection 5-Year Age Bracket. Cost Per $1,000 of Protection for One Month Under 25 $0.05 25 to 29 0.06 30 to 34 0.08 35 to 39 0.09 40 to 44 0.10 45 to 49 0.15 50 to 54 0.23
Sammy's employer pays for 40% of her annual health insurance premium of $5,150,00, Sammy pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will Sammy have deducted from each paycheck? $2060 $79.23 $3,090 $118,85
39. Annie is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Annie's employer pays the entire premium for the policy, for which the uniform premium table factor is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is included in Annie's gross income on an annual basis? a. $0. b. $450. c. $1,350. d. $1,800.
Interview Notes • Luther and Lexi are married and file a joint return. Luther was enrolled in employer-sponsored family coverage through a high deductible health plan (HDHP) for all of 2020. His monthly premiums are $300. • In 2020, Luther contributed $1,700 to his Health Savings Account (HSA). Of that amount, $1,200 was made pretax through his employer's cafeteria plan and he made the remaining $500 contribution by electronic deposit into the HSA from his checking account. His employer sent Form W-2 reporting $1,200 in Box 12a, with code W. • Luther received a Form 1099-SA showing a distribution from his HSA of $230. Luther did not have any medical expenses for the year. Lexi paid $80 to the dentist for a filling, and $150 for lab work ordered during her physical. • Luther and Lexi felt fortunate to have good jobs when so many people in their community were out of work, so they donated $250 by check to their local food bank. The food bank is a qualified organization and provided…
Jewel Lyman is an employee in the office of Salvaggio & Wheelers, Attorneys at Law. She received the following benefits during 2018: Medical insurance: $250 per month . Commuter pass: $500 per year Employer-paid membership to Anytime Gym: $75 per year Dependent care assistance: $3,600 per year Required: What is the total taxable amount for Jewel's 2018 benefits? Answer is complete but not entirely correct. Total taxable amount $6750
Mena has year-to-date (YTD) earnings of $125,200. If her next paycheck put her above the wage base limit of $128,400, what will be the amount of the social security deduction at 6.2 %? a. $788.76 b. $128.20 c. $198.40 d. $204.60
Belinda, a 55 year old single woman with no dependents, has a $75,000 group term life insurance policy through her employer. Her employer pays the premiums on Belinda's group term life insurance policy. How much per year will Belinda have to include into her gross income associated with the cost of this insurance? Assume the cost of this insurance is $0.43 per month per $1,000 of coverage. Multiple Choice $0 $65 $129 None of the above

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