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LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month.
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28 votes
28 votes
LaMont works for a company in downtown Chicago. The company encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $290 per month. rev: 09_23_2020_QC_CS-230013a. If LaMont receives one pass (worth $290) each month, how much of this benefit must he include in his gross income each year

User Prats
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21 votes
21 votes

Answer:

The IRS sets the limit on transportation benefits provided by an employer, for 2021, this limit is $270 per month, or $3,240 per year.

The total benefit received by LaMont should = 12 x $290 = $3,480

This means that he must include $3,480 - $3,240 = $240 as part of his annual gross income.

User Brent Kerby
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