Ben received the following benefits from his employer this year. What amount must Ben include in his gross income?

Question

Quizplus · Accepted Answer

From the given options, Ben must include $10,600 in his gross income.

- Health insurance premiums paid by the employer are excludable from gross income, so $3,000 can be subtracted from the total benefits received. 
- Life insurance premiums paid by the employer for coverage up to $50,000 are also excludable, so $500 can be subtracted from the total. 
- The $1,000 contribution to Ben's flexible spending account is not included in gross income. 
- However, the $6,000 bonus and $400 contribution to Ben's HSA are both taxable income and must be included in his gross income.

So the total taxable benefits received by Ben are $6,000 + $400 = $6,400.

Therefore, the answer is C) $10,600.

Ben Received the Following Benefits from His Employer This Year