Kristen's employer owns its building and provides parking space for its employees.The value of the free parking is $150 per month.Karen's employer does not have parking facilities but reimburses its employees for the cost of parking in a nearby garage up to $150 per month.

Question

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Under the U.S. tax code, employer-provided parking is a fringe benefit that can generally be excluded from an employee's gross income. This applies whether the employer owns the parking facilities (as in Kristen's case) or reimburses the employee for parking expenses (as in Karen's case), up to certain limits. Since both scenarios involve parking benefits that do not exceed these limits, neither Kristen nor Karen is required to include the value or reimbursement of parking in their gross income.

Kristen's Employer Owns Its Building and Provides Parking Space for Its