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Why You May Owe More Tax Soon on Popular Employee Benefits

The article from Kiplinger discusses potential changes in tax laws that could affect the taxation of popular employee benefits. It highlights that benefits like group-term life insurance, educational assistance, and adoption assistance might see an increase in taxable income for employees. Specifically, the Tax Cuts and Jobs Act (TCJA) of 2017 has already eliminated the deduction for entertainment expenses, and there's a looming possibility that other fringe benefits could lose their tax-advantaged status. For instance, the tax-exempt status of employer-provided educational assistance might not be extended beyond 2020, and the tax treatment of group-term life insurance over $50,000 could change. Additionally, the article mentions that the IRS might scrutinize these benefits more closely, potentially leading to higher taxable income for employees if these benefits are deemed taxable. This could result in employees owing more in taxes unless Congress acts to extend or modify these tax provisions.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/taxes/why-you-may-owe-more-tax-soon-on-popular-employee-benefits ]