The following table represents the amount which must be added to income when an employer provided Life Insurance policy has a benefit

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)]

Age	Cost
Under 25	5¢
25 through 29	6¢
30 through 34	8¢
35 through 39	9¢
40 through 44	10¢
45 through 49	15¢
50 through 54	23¢
55 through 59	43¢

60 through 64	66¢
65 through 69	$1.27
70 and above	$2.06

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).

50 x 12 x .15¢

$100,000 policy has 50
more thousands than $50,000

Policy provided
for 12 months

For a 47-year old the
chart above shows 15¢