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In: Accounting

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits....

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2019, Tanya selected $3,420 ($285 per month) of parking, $1,780 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?

a. $0

b. $1,040

c. $3,420

d. $4,220

Solutions

Expert Solution

Parking benefits (285 - 265)*12 months 240
Cash 800
Amount to be included in Taxable income 1040

* Qualified transportation fringe benefit limit for 2019 is $265 per month

ekkarill92 answered 2 years ago
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