Boris wanted to reduce his tax liability by lowering the amount of income that is taxable through deductions and credits.To do this,he decided to use the cafeteria plan available through his employer.How is the cafeteria plan advantageous for Boris?

Question

Quizplus · Accepted Answer

The cafeteria plan allows Boris to select tax-advantaged benefits, which are paid on a pretax basis. This reduces his taxable salary and helps him lower his tax liability. A and B both explain this advantage, making D the correct answer. Option C is incorrect because the cafeteria plan does not affect the number of exemptions that Boris can claim on his taxes.

Boris Wanted to Reduce His Tax Liability by Lowering the Amount