Which amount of group life insurance value is included in an employee's taxable income?

In the context of group life insurance, the tax implications for employees are notably influenced by IRS regulations. Specifically, the value of group term life insurance provided to employees is generally not taxable as a benefit up to a certain limit. That limit is set at $50,000.

When the coverage exceeds this threshold, the IRS requires that the amount over $50,000 be included in the employee's taxable income. This additional taxable amount is calculated based on a formula that considers the cost of the insurance coverage in excess of the $50,000 limit.

This regulation is in place to ensure that while employers can provide generous benefits to their employees, substantial life insurance policies offered as part of group plans are appropriately taxed once they surpass the defined limit, thereby preventing potential abuse of tax-free benefits. Thus, the correct answer reflects that any group life insurance benefit exceeding $50,000 is considered taxable income for the employee.