Trying to really drill down these forms which has always been my weakness. Line 7 of the 1040 (wages) here is there explanation:
“Line 7: This line is the sum of the couple’s wages, which is $100,000 ($53,000 + $47,000) and the imputed income on the group term life insurance excess coverage for Alex ($2.88, rounded to $3.00). The imputed amount is a two-step calculation. First, the number of $1,000 units of insurance coverage in excess of $50,000 is determined. In this case, there are 3 units of excess coverage, calculated as follows:
$53,000 − $50,000 = $3,000, or 3 units of coverage
Second, the imputed cost for the excess units is determined. The imputed cost equals the monthly premium amount (see the Uniform Premiums table in Regulation Section 1.79-3(d)) corresponding to Alex’s age (30) times the number of months of insurance coverage (12 months). More specifically, the imputed cost equals:
3 units of coverage, multiplied by $0.96 per unit ($0.08 per unit per month × 12 months), which equals $2.88.
(The reference for this line is section 4512.15 in the Regulation Reference volume.)”
Where did they get the $.08/month x 12 calc? I know I've seen questions like this in the MCQ's and they usually provide the rate to multiply for amounts exceeding $50k
I'm gong to take a mini break–hope to hear back from someone!
FAR - 78
REG - 72,74,71...please just go away REG nobody likes you!
BEC - 82
AUD - Aug 16
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