Originally Posted by
acl65pilot
Jesse;
Any AD&D or Life Insurance benefit that is paid by a company beyond 50,000 Dollars US, is taxable. You will see in your paycheck a dollar about that by the end of the year will equal your tax on this benefit.
acl, actually the amount that shows on your paycheck is the amount of imputed income. The actual tax on the life insurance benefit is equal to your marginal tax rate times that imputed amount. For example, a typical 32 year old would have $18.87 show up on each paycheck. If he's in the 34% tax bracket (fed and state), that would equate to $6.42/paycheck in actual tax (cost).