J.K. Lasser's Your Income Tax Professional Edition 2017

Chapter 3 Fringe Benefits

1. 3.1 Tax-Free Health and Accident Coverage Under Employer Plans
2. 3.2 Health Savings Accounts (HSAs) and Archer MSAs
3. 3.3 Reimbursements and Other Tax-Free Payments From Employer Health and Accident Plans
4. 3.4 Group-Term Life Insurance Premiums
5. 3.5 Dependent Care Assistance
6. 3.6 Adoption Benefits
7. 3.7 Education Assistance Plans
8. 3.8 Company Cars, Parking, and Transit Passes
9. 3.9 Working Condition Fringe Benefits
10. 3.10 De Minimis Fringe Benefits
11. 3.11 Employer-Provided Retirement Advice
12. 3.12 Employee Achievement Awards
13. 3.13 Employer-Furnished Meals or Lodging
14. 3.14 Minister’s Housing or Housing Allowance
15. 3.15 Cafeteria Plans Provide Choice of Benefits
16. 3.16 Flexible Spending Arrangements
17. 3.17 Company Services Provided at No Additional Cost
18. 3.18 Discounts on Company Products or Services

Employer-furnished fringe benefits are exempt from tax if the tests discussed in this chapter are met.

The most common tax-free benefits are accident and health plan coverage, including employer contributions to health savings accounts (HSAs), group-term life insurance plans, dependent care plans, education assistance plans, tuition reduction plans, adoption benefit plans, cafeteria plans, and plans providing employees with discounts, no-additional-cost services, or employer-subsidized meal facilities.

Highly compensated individuals may be taxed on certain benefits from such plans if nondiscrimination rules are not met.

Table 3-1 Are Your Fringe Benefits Tax Free?