Which of the Following Fringe Benefits Is Taxable to the Employee

question 30

Multiple Choice

Which of the following fringe benefits is taxable to the employee receiving the benefit?

• A)A subscription to a tax journal provided by the employer to a corporation's tax accountant
• B)A small discount on toys granted to the salesperson for a toy store
• C)Incidental use of the company's copier by an office worker
• D)A 15 percent discount on investment real estate granted to the employee of a real estate developer
• E)All of the above are tax-free

---

Definitions:

Taxable Income

The amount of income that is used to determine how much tax an individual or a business owes to the government.

Form 1040EZ

was a simplified tax form used by individuals with straightforward tax situations, now replaced by Form 1040.

Deduction

An expense that can be subtracted from taxable income, reducing the total amount of tax owed.

Single Taxpayer

A filing status for individuals who are unmarried and do not qualify for any other filing status on their tax returns.