FICA and seniors
I am a senior and retired fourteen years ago. My ex-employer sponsors a life insurance program for me. His cost appears on a W2 as "wages". Should I pay FICA on this amount?
Lancaster County Pennsylvania personal finance
If your former employer provided more than $50,000 of group-term life insurance coverage during the year, the amount included in your income is reported as wages in box 1 of Form W-2. Also, it is shown separately in box 12 with code C. Box 12 also will show the amount of uncollected social security and Medicare taxes on the excess coverage, with codes M and N. You must pay these taxes with your income tax return. Include them on line 60, Form 1040, and follow the instructions for line 60. For more information, see the Instructions for Form 1040.