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Group Life Insurance

I retired in 2018 and my former employer sent a W2 this year showing a taxable benefit in boxes 12a - 12d with codes C, M & N for Group Life Insurance coverage over $50,000. C = 1,310.64, M = 81.26 and N = 19. From what I have been able to dig up I understand that M & N are owed as uncollected Social Security and Medicare taxes. It seems my refund was reduced dollar for dollar for M & N. But the reduction of my refund was around $300 for the entry in C (which I never found any documentation for owing taxes on that). If C is taxable, why would the tax rate be in the vicinity of 22.9% (300 / 1,310.64) when my top tax rate is still in the 12% range? Thanks.

3 Replies

Group Life Insurance

just enter the W-2 as it appears the money in Code M, N you will have to pay s tax due.

Group Life Insurance

Code C amount is taxable and TurboTax knows how to calculate your tax.

That's what you're paying for.

Group Life Insurance

don't confuse your average tax rate with your next-dollar tax rate.  add another $100 of income to find the next-dollar rate..

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