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Tanya's Employer Offers a Cafeteria Plan That Allows Employees to Choose

Question 74

Multiple Choice

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2016, Tanya selected $3,300 ($275 per month) of parking, $2,200 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?


A) $0
B) $1,040
C) $1,120
D) $4,000

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