Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2018, Tanya selected $3,360 ($280 per month) of parking, $1,840 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?

Question

Quizplus · Accepted Answer

$1,040 is includable: $240 of parking benefits [($280 - $260) × 12)] and $800 of cash.

Tanya's Employer Offers a Cafeteria Plan That Allows Employees to Choose