Artículo Holiday gifts.. Holiday gifts.

id="en_US_2025_publink1000171242"> Holiday gifts. If your employer gives you a turkey, ham, or other item of nominal value at Christmas or other holidays, don’t include the value of the gift in your income. However, if your employer gives you cash or a cash equivalent, you must include it in your income. Educational Assistance You can exclude from your income up to $5,250 of qualified employer-provided educational assistance. For more information, see Pub. 970, Tax Benefits for Education. Group-Term Life Insurance In most cases, the cost of up to $50,000 of group-term life insurance coverage provided to you by your employer (or former employer) isn’t included in your income. However, you must include in income the cost of employer-provided insurance that is more than the cost of $50,000 of coverage reduced by any amount you pay toward the purchase of the insurance. For exceptions, see Entire cost excluded and Entire cost taxed , later. If your employer provided more than $50,000 of coverage, the amount included in your income is reported as part of your wages in box 1 of Form W-2. Also, it’s shown separately in box 12 with code C. Group-term life insurance. This insurance is term life insurance protection (insurance for a fixed period of time) that: Provides a general death benefit, Is provided to a group of employees, Is provided under a policy carried by the employer, and Provides an amount of insurance to each employee based on a formula that prevents individual selection. Permanent benefits. If your group-term life insurance policy includes permanent benefits, such as a paid-up or cash surrender value, you must include in your income, as wages, the cost of the permanent benefits minus the amount you pay for them. Your employer should be able to tell you the amount to include in your income. Accidental death benefits. Insurance that provides accidental or other death benefits but doesn’t provide general death benefits (travel insurance, for example) isn’t group-term life insurance. Former employer. If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Also, it’s shown separately in box 12 with code C. Box 12 will also show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. You must pay these taxes with your income tax return. Include them on Schedule 2 (Form 1040), line 13. Two or more employers. Your exclusion for employer-provided group-term life insurance coverage can’t exceed the cost of $50,000 of coverage, whether the insurance is provided by a single employer or multiple employers. If two or more employers provide insurance coverage that totals more than $50,000, the amounts reported as wages on your Forms W-2 won’t be correct. You must figure how much to include in your income. Reduce the amount you figure by any amount reported in box 12 of Form W-2, with code C, add the result to the wages reported in box 1, and report the total on your return. Figuring the taxable cost. Use Worksheet 5-1 to figure the amount to include in your income. Worksheet 5-1. Figuring the Cost of Group-Term Life Insurance To Include in Income 1. Enter the total amount of your insurance coverage from your employer(s) 1. _____ 2. Limit on exclusion for employer-provided group-term life insurance coverage 2. 50,000 3.