Exclusions from Gross Income: Exclusions for Employees

Question 1

Exclusions

Answer 1

Health Insurance, Life Insurance, Child/Elder Care, Pension Plan Contributions, Tuition Assistance, No-Additional Cost Items, Employee Discounts, Working Conditions Otherwise Deductible By Employee, De Minimis Items, On-Premise Meals, Lodging, Communting Allowances, Employee Achievement Awards,

Question 2

Life Insurance

Answer 2

Up to 50k is excluded, lump sum will not be taxed, but installment payments are treated as partial interest.

Question 3

Child/Elder Care

Answer 3

Up to 5k

Question 4

Tuition Assistance

Answer 4

Up to 5250

Question 5

No Additional Cost Items

Answer 5

Airline employee flying standby

Question 6

Employee Discounts

Answer 6

Goods at wholesale are fine, however, below wholesale is gross income.

Services = 20% below cost

Question 7

De Minimis Items

Answer 7

Coffee and Donuts in lounge

Question 8

Nondiscrimination Rules

Answer 8

Can’t just have benefit for highly compensated employee (look at the importance of the benefit)