Which of the following fringe benefits is NOT excludable from an employee’s wages for 2023? A) $60,000 of group term life insurance covering the death of an employee. B) Educationa... Which of the following fringe benefits is NOT excludable from an employee’s wages for 2023? A) $60,000 of group term life insurance covering the death of an employee. B) Educational assistance expenses of $5,250 provided through an educational assistance program. C) Dependent care assistance of $5,000 provided through a dependent care assistance program. D) Qualifying adoption expenses of $15,950 provided through an adoption assistance program.
Understand the Problem
The question is asking us to identify which fringe benefit listed among the options is not excludable from an employee’s wages for the year 2023. To solve this, we will analyze each option based on tax regulations regarding fringe benefits.
Answer
$60,000 of group term life insurance covering the death of an employee.
The final answer is A) $60,000 of group term life insurance covering the death of an employee.
Answer for screen readers
The final answer is A) $60,000 of group term life insurance covering the death of an employee.
More Information
$60,000 of group term life insurance is not excludable because the IRS typically allows exclusions only up to $50,000. Any amount over $50,000 is taxable as income for the employee.
Tips
A common mistake is assuming all group term life insurance amounts are excludable. It’s important to remember only coverage up to $50,000 is excludable.
Sources
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