Nicole's employer pays her $150 per month towards the cost of parking near a railway station where Nicole catches the train to work. The employer also pays the cost of the rail pass, $75 per month. Nicole can exclude both of these payments from her gross income.

Question

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The employer's payment towards the cost of parking and the rail pass can both be excluded from Nicole's gross income. This means that she does not have to pay taxes on these payments.

Nicole's Employer Pays Her $150 Per Month Towards the Cost