Elizabeth received the following benefits from her employer this year:
-$5,000 year-end bonus for exceeding sales expectations
-$400 cash as a length-of-service award
-$2,400 for insurance premiums paid by her employer for a disability income policy
-$5,100 for tuition paid by her employer for courses not related to her job under an educational assistance plan
How much must Elizabeth include in gross income?

Question

Elizabeth received the following benefits from her employer this year: 
-$5,000 year-end bonus for exceeding sales expectations
-$400 cash as a length-of-service award
-$2,400 for insurance premiums paid by her employer for a disability income policy
-$5,100 for tuition paid by her employer for courses not related to her job under an educational assistance plan
How much must Elizabeth include in gross income?

Quizplus · Accepted Answer

Elizabeth must include the year-end bonus of $5,000, the length-of-service award of $400, and the insurance premiums of $2,400 in her gross income, totaling $7,800. However, the tuition paid by her employer for courses not related to her job under an educational assistance plan is not taxable, so it does not need to be included in her gross income. Therefore, the correct answer is $7,800 + $0 = $7,800, which is answer choice B.

Elizabeth Received the Following Benefits from Her Employer This Year