Jenna's employer offers a cafeteria plan that allours employees to choose among a rumber of qualified benefits. Each employee is allowed $7.000 in benefits. For 2021, Jerma selected $2.400 (5200 per month) of parking. $1,880 In 401[k) contributions, and $800 et cash. How much must Jenna Include in taxable incorne? 0 so. O $800 O 53200. O $7 000 © None of the answers are correct

Jenna's employer offers a cafeteria plan that allours employees to choose among a rumber of qualified benefits. Each employee is allowed $7.000 in benefits. For 2021, Jerma selected $2.400 (5200 per month) of parking. $1,880 In 401[k) contributions, and $800 et cash. How much must Jenna Include in taxable incorne? 0 so. O $800 O 53200. O $7 000 © None of the answers are correct

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 41P

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Jewel Lyman is an employee in the office of Salvaggio & Wheelers, Attorneys at Law. She received the following benefits during 2018: Medical insurance: $250 per month . Commuter pass: $500 per year Employer-paid membership to Anytime Gym: $75 per year Dependent care assistance: $3,600 per year Required: What is the total taxable amount for Jewel's 2018 benefits? Answer is complete but not entirely correct. Total taxable amount $6750
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Question 2 Leslie, age 27, is an employee of Naples Corp. which provides the following nondiscriminatory fringe benefits received in 2021: insurance premiums of $1,050 for salary continuation payments. Under the plan, Leslie will receive her regular salary in the event she is unable to work due to illness. Leslie collected $7,100 on the policy to replace lost wages while she was ill during the year. • $5,500 tuition under a plan available to all full-time employees. Leslie is a part-time student working on her bachelor's degree in accounting. • hospitalization insurance premiums for Leslie and family. The cost of the coverage for Leslie is $3,000 per year, and the additional cost for dependents is $3,775 per year. The plan has a $2,000 deductible, but Naples contributed $1,500 to the Health Savings Account (HSA). Leslie withdrew only $1,000 from the HSA, and the account earned $6.92 interest during the year. For each of the following, what is the amount to be included in Leslie's gross…
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