Question

Ayeshia filed her tax return, properly claiming the head of household filing status. Ayesha's employer paid or provided the following to Ayesha:

Wages	$110,000
Fair market value of qualified dependent care services	3,000
Premiums for $50,000 qualified group term life insurance	1,350
Medical insurance premiums	5,725

How much of this income should Ayesha report (assume benefits are provided on a nondiscriminatory basis)?

A) $110,000

B) $111,350

C) $113,000

D) $120,075

Answer 1

The correct option is A : $110,000

Explanation

1) Only the wages are taxable.

2) Qualified dependent care services up to $5,000 are not taxable.

3) premiums paid for group term insurance coverage up to $50,000 are not taxable;

4) medical insurance premiums are not taxable.

Hence option bA is correct : $ 110,000