What is Excludable fringe benefits?
In short
Certain fringe benefits employers provide are excluded from employees' gross income, including no-additional-cost services, qualified employee discounts, working condition fringes, de minimis fringes, qualified transportation fringes and on-site athletic facilities.
Key takeaways
- No-additional-cost services and employee discounts must be offered without favoring highly compensated employees.
- A working condition fringe is one the employee could have deducted as a business expense, such as a company car for business use.
- Benefits that don't qualify are included in wages at fair market value.
Where it's tested
REG: Individual Taxation: Gross Income — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which of the following items is included in a taxpayer's federal gross income?