Basic Federal Income Taxation: Gross Income: The Taxability of Employment Connected Payments: Fringe Benefits, Meals and Lodging, Unemployment Compensation, and Social Security Benefits

This lesson will introduce users to regulations concerning employment connected payments, including fringe benefits, meals and lodging, unemployment compensation and Social Security benefits. The questions cover Internal Revenue Code section 132 and others.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Provide an example of a no additional cost service fringe, a working condition fringe, a de minimis fringe, and a qualified transportation fringe, as described in § 132(a)(1), (3), (5).
2. Apply the § 119 exclusion for meals and lodging furnished for the convenience of the employer and the § 79 exclusion for group term life insurance.
3. Explain how the constitutionality issues in Gaylor v. Mnuchin may change the parsonage allowance.
4. Explain what portion of an employee discount is excluded from gross income.
5. Calculate what portion of a retiree's Social Security benefits is includible in her gross income.