Sampson's employer offers group-term life insurance coverage for his employees. Sampson has chosen to participate in the offered coverage. The coverage offered by his employer has three options for coverage; a $50,000 policy, a $100,000 policy, and a $150,000 policy. Sampson has chosen the $150,000 policy. The employer pays $50 per month for any policy chosen, and the employee is responsible for the remaining portion of the policy premium. Which of the following statements is most accurate?

A portion of the premium costs paid by the employer on a group-term policy, which exceeds $50,000, will become taxable income to Sampson. However, Sampson may be allowed to reduce the taxable amount by a portion of the premium payments he had paid.

A portion of the premium costs paid by the employer on a group-term policy, which exceeds $50,000, is taxable income to Sampson. He may not reduce the taxable amount by a portion of the premium payments he made.

The full cost of the premiums paid by the employer will be included in income since Sampson chose a policy which exceeds $50,000 in coverage.

There is no portion of the group-term life insurance policy costs taxable to Sampson since he paid part of the monthly cost for coverage.

Answer rating: 100% (QA)

is most accurato which of the following statement... View the full answer