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1. Judy is covered by a $200,000 group-term life insurance policy of which her daughter is...

1. Judy is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Judy’s employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is excluded from Judy’s gross income on an annual basis? PLEASE SHOW WORK

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Expert Solution

Judy can exclude maximum of 50000 of groupterm life insurance coverage.The exclusion amount is calculated as below:

=(50000/1000)*0.75*12=450

ekkarill92 answered 2 years ago
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