Question

In a W-2 form, which BOX 12 CODE represents the "Value of Group Term Life Insurance (GTL) over $50,000"?

A) Code A
B) Code C
C) Code D
D) Code I

Answer 1

Option (B), The code that represents the Value of Group Term Life Insurance over $50,000 in a W-2 form is Code C, which is a taxable benefit that's reported as income.

Step-by-step explanation:

In a W-2 form, the code that represents the Value of Group Term Life Insurance (GTL) over $50,000 is Code C. This coverage is reported because it is a taxable benefit when the employer-provided group term life insurance exceeds $50,000, and it is treated as income for the employee. Therefore, the value of coverage over $50,000 must be reported and is subject to income as well as social security and Medicare taxes.