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New wage taxes of supplemental group term-life insurance.
posted at February 12, 2012 12:51 PM EST
First: February 12, 2012
Last: February 12, 2012
Recently I received a w-2 seperate from my pension w-2 for wages on "Taxable cost of group term-liife insurance over $50,000. In addition, I am being assessed back social security and medicare taxes as well as federal tax on the wages.
Yes, this insurance is group insurance provided thru my former employer. All of this is found on line 12a, 12b and 12c. Additional information is available in Pub 15 from the IRS. This is the first year I have received this W-2 and I have contacted my former company for an explanation. I do carry supplemental life insurance in order to help protect my family from financial devastation in the event of my death.
Question: Does anyone know what tax law supports this tax and when the law was passed?
Who decided that the first $50,000 was exempt? (Is it possible that this person/persons have never seen a medical bill that had six or more figures before the decimal point?)
If one is already drawing social security and on medicare, why are back taxes for these programs applicable?