Question

the following is excluded from the taxable income of the recipient under a specific statutory exclusion of the internal revenue code: a. the entire $6,000 reimbursement of child care expenses by an employer. b. a $300 check to an employee for maintaining safety standards in the workplace. c. on-campus housing provided to a professor at a monthly rent of $500, when the fair market value of this house is $150,000 d. none of the above.

Answer 1

The tax code does provide specific exclusions from taxable income, such as employer-provided child care reimbursement and on-campus housing for university employees under certain conditions. A $300 safety incentive is not typically excluded. Specific circumstances and tax code details should be reviewed to determine the correct tax treatment.

Step-by-step explanation:

The specific statutory exclusion from taxable income of the recipient under the Internal Revenue Code applies to various types of income. Regarding the options given:

• A. $6,000 reimbursement of child care expenses by an employer is an example of an exclusion for dependent care benefits under certain conditions.
• B. A $300 check to an employee for maintaining safety standards may be considered a taxable benefit unless specific exclusions apply which are not typically found in the tax code.
• C. On-campus housing provided at a rent below fair market value could be excluded from income under Section 119 of the Internal Revenue Code if it is provided for the convenience of the employer and on the employer's business premises.
• D. It is not accurate that 'none of the above' are excluded as some may be excluded under specific conditions.

It is important to review the specific circumstances and the tax code in detail, as there are many intricacies involved.