Page 30 - Virtual Currencies

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Table 1. Cost of $1,000 of 8:29 - 7-Feb-2023
Worksheet 1. Figuring the Group-Term Life Insurance for 1 Worksheet 1. Figuring the
Cost of Group-Term Life Month Cost of Group-Term Life
Insurance To Include in Age Cost Insurance To Include in
Income $ .05 Income—Illustrated
Keep for Your Records Under 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .06 Keep for Your Records
25 through 29 .
1. Enter the total amount of 30 through 34 . . . . . . . . . . . . . . .08 1. Enter the total amount of
your insurance coverage 35 through 39 . . . . . . . . . . . . . . .09 your insurance coverage
from your from your
employer(s) . . . . . . . . . . . 1. 40 through 44 . . . . . . . . . . . . . . .10 employer(s) . . . . . . . . . . . . 1. 80,000
45 through 49 . . . . . . . . . . . . . . .15 2. Limit on exclusion for
2. Limit on exclusion for employer-provided
employer-provided 50 through 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 group-term life insurance
.43
55 through 59 .
group-term life insurance coverage . . . . . . . . . . . . . . 2. 50,000
coverage . . . . . . . . . . . . . 2. 50,000 60 through 64 . . . . . . . . . . . . . . .66 3. Subtract line 2 from
65 through 69 . . . . . . . . . . . . . . 1.27 line 1 . . . . . . . . . . . . . . . . . 3. 30,000
3. Subtract line 2 from 4. Divide line 3 by $1,000.
line 1 . . . . . . . . . . . . . . . . 3. 70 and above . . . . . . . . . . . . . . 2.06 Figure to the nearest
tenth . . . . . . . . . . . . . . . . .
4. Divide line 3 by $1,000. Example 3. You're 51 years old and work 5. Go to Table 1. Using your 4. 30.0
Figure to the nearest for employers A and B. Both employers provide age on the last day of the tax
tenth . . . . . . . . . . . . . . . . 4. group-term life insurance coverage for you for
the entire year. Your coverage is $35,000 with year, find your age group in
5. Go to Table 1. Using your employer A and $45,000 with employer B. You the left column, and enter the
cost from the column on the
age on the last day of the pay premiums of $4.15 a month under the em- right for your age
ployer B group plan. You figure the amount to
tax year, find your age include in your income as follows. group . . . . . . . . . . . . . . . . 5. .23
group in the left column,
and enter the cost from the 6. Multiply line 4 by 6.90
column on the right for your line 5 . . . . . . . . . . . . . . . . . 6.
age group . . . . . . . . . . . . 5. 7. Enter the number of full
months of coverage at this
6. Multiply line 4 by cost . . . . . . . . . . . . . . . . . . 7. 12
line 5 . . . . . . . . . . . . . . . . 6. 8. Multiply line 6 by
line 7 . . . . . . . . . . . . . . . . . 8. 82.80
7. Enter the number of full 9. Enter the
months of coverage at this premiums you paid
cost . . . . . . . . . . . . . . . . . 7. per month . . . . . 9. 4.15
10. Enter the number
8. Multiply line 6 by of months you paid
line 7 . . . . . . . . . . . . . . . . 8. the
premiums . . . . . 10. 12
9. Enter the 11. Multiply line 9 by
premiums you line 10 . . . . . . . . . . . . . . . . 11. 49.80
paid per 12. Subtract line 11 from line 8.
month . . . . . . . . 9. Include this amount in
your income as
10. Enter the number wages . . . . . . . . . . . . . . . 12. 33.00
of months you
paid the The total amount to include in income for the
premiums . . . . . 10. cost of excess group-term life insurance is $33.
Neither employer provided over $50,000 insur-
11. Multiply line 9 by ance coverage, so the wages shown on your
line 10 . . . . . . . . . . . . . . . 11. Forms W-2 don't include any part of that $33.
You must add it to the wages shown on your
12. Subtract line 11 from line 8. Forms W-2 and include the total on your return.
Include this amount in
your income as Entire cost excluded. You aren't taxed on
wages . . . . . . . . . . . . . . 12. the cost of group-term life insurance if any of
the following circumstances apply.
1. You’re permanently and totally disabled
and have ended your employment.
2. Your employer is the beneficiary of the
policy for the entire period the insurance is
in force during the tax year.
3. A charitable organization to which contri-
butions are deductible is the only benefi-
ciary of the policy for the entire period the
insurance is in force during the tax year.
(You aren’t entitled to a deduction for a
Publication 525 (2022) Page 7