Question

frank received the following benefits from his employer this year. what amount must frank include in his gross income? benefits received amountsalary$74,250health insurance 5,600group term life insurance (face $50,000) 2,150

Answer 1

Frank must include his entire salary in his gross income. The health insurance benefit is typically not taxable, but the group term life insurance may be partially taxable if it exceeds the IRS threshold. Without specific details such as Frank's age or IRS Premium Table rate, we cannot compute the taxable amount of the life insurance benefit.

Step-by-step explanation:

The question pertains to what amount must be included in Frank's gross income based on the benefits he received from his employer. Generally, salary is fully taxable and must be included in gross income. Health insurance provided by an employer is typically excluded from income. However, the cost of employer-provided group term life insurance is included in income to the extent that it exceeds $50,000 in coverage, and the amount that is taxable is determined using the IRS Premium Table. Frank would include in his income the full amount of his salary ($74,250) and the taxable portion of his life insurance benefit, if any. To accurately calculate the taxable portion of the life insurance, the IRS Premium Table and Frank's age would be required. Since the question does not provide Frank's age or the Premium Table rate, we cannot calculate the exact taxable amount of the life insurance benefit. We can, however, state that the $5,600 health insurance would not be included in his gross income.

Answer 2

Frank must include his entire salary in his gross income, health insurance benefits are usually excluded from gross income, and only the premiums paid for group term life insurance over $50,000 of coverage need to be included in his gross income.

Step-by-step explanation:

The question is asking what amount Frank must include in his gross income from the benefits he received from his employer. In general, an employee's salary is always included in gross income.

The cost of employer-provided health insurance is typically excluded from an employee's gross income. However, the cost of employer-provided group term life insurance is generally excluded from income only up to a coverage amount of $50,000.

Any cost for coverage above that amount would need to be included in the employee's gross income.

Considering the information provided, it seems there may be a typo in the group term life insurance benefit amount or the face value of the insurance, as typically only the premiums paid by the employer for the amount of coverage above $50,000 would be included in income, and not the face value of the policy itself.