Match Each Statement with the Correct Term Below

question 5

Multiple Choice

Match each statement with the correct term below.
-Gift

• A)An employee may exclude up to $5,000 annually of these employer-provided services.
• B)If cash is received under this program, taxpayers are taxed on the amount of cash received.
• C)A salary reduction plan that allows employees to pay for medical and child care costs with before-tax dollars.
• D)A transfer of property without any profit motivation with an intention that includes affection, charity, and respect.
• E)Payments made into an employee's account are not taxable in the current period; taxation is deferred until funds are withdrawn.
• F)Employer provided benefit that may be excluded from income because the dollar amounts are too small for a reasonable accounting.

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Definitions:

Deductibility

The quality of an expense being allowed by tax laws to be subtracted from gross income to reduce taxable income.

Moving Expenses

Costs associated with moving for work, which may be deductible under certain conditions for tax purposes.

Pre-Move House Hunting

Expenses incurred while searching for a new residence before relocating for a job, which may be deductible or reimbursable under certain circumstances.

Deductible Moving Expense

Expenses related to moving for work that exceed a certain distance and time requirement, which can be deducted for tax purposes, but currently limited to members of the Armed Forces.