Taxpayers who are employees for income tax purposes may benefit from several tax advantages. Employees may exclude the cost of employer-paid medical and dental insurance from income. *They may also exclude the cost of up to $50,000 of coverage in employer-paid group life insurance. Employees may also be eligible to participate in employer-sponsored retirement plans.
*Note: Health care reform has changed the rules regarding how employers may reimburse employees for the cost of health care coverage — and these changes have tax implications. Check out this page for in-depth information about this change.
For more information, visit GuideStone.org/TaxGuide