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  • Are life insurance premiums paid by the employer considered taxable income?

    If your employer pays life insurance premiums on your behalf, and you are the primary beneficiary, then any amount greater than $50,000 is taxable. For example, if your employer paid $65,000 of life insurance premiums, you as the taxpayer would record $15,000 of taxable income (taxable fringe benefit).

  • Are salaries and wages considered taxable income?

    Yes, wages paid by your employer to you would be considered taxable income. Your employer must send you a W-2, and the W-2 summarizes your taxable wages. Your taxable wages would include your salary, bonuses, and any gifts greater than $25.

  • Are education expenses paid by my employer taxable?

    Yes, but not 100% of education expenses paid by your employer are considered taxable income for you. IRS guidelines say that up to $5,250 is nontaxable, while anything in excess of $5,250 is taxable. For example, if Lulu’s employer paid $12,000 for her to get an MBA, $5,250 would be nontaxable, but the remaining $6,75...