Emily is a CPA and frequently works late during the busy season. As an incentive to stay late, her employer gives her a choice of either $20 from the petty cash fund so she can buy dinner on her way home, or stay until 8 pm and get free pizza in the office each day she works more than 10 hours. The $20 is excludible from Emily’s taxable income because of which of the following:
It is a no additional cost fringe benefit
None of these will work to exclude the amount
Any of these will work to exclude the amount
It is a de minimus fringe benefit.
It is a working condition fringe benefit
The $ 20 is excludible from Emily's taxable income because of it is a de minimus fringe benefit.
Explanation : It is tax free and not included in the taxable income of the recipient because it is of very low value , and for temporary time ( busy season) period. Most importantly Late night meal charges is only provided for employer's convenience other wise the employee can't able to work late in busy season.
Emily is a CPA and frequently works late during the busy season. As an incentive to...
Part B. Gross Income Inclusions & Exclusions For each Q-6 through Q-19 below, determine whether the item described should be INCLUDED IN or EXCLUDED FROM the Gross Income of the taxpayer who receives the item. • Darken Box A on the Scantron sheet if the item should be INCLUDED IN gross income • Darken Box B on the Scantron sheet if the item should be EXCLUDED FROM gross income 6. $25,000 scholarship for tuition and books received by a full-time...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...