Eight Fringe Benefits Excluded From Gross Income
Section 132(a)(1): No-Additional-Cost Service. A No-Additional-Cost Service is defined in Section 132(b) as any service provided by an employer to an employee if (1) the service is offered for sale to customers in the ordinary course of the employer's business and (2) the employer incurs no substantial additional cost in providing the service to the employee.
Section 132(a)(2): Qualified Employee Discount. A Qualified Employee Discount is defined in Section 132(c) as any employee discount with respect to qualified property or services to the extent the discount does not exceed (a) the gross profit percentage of the price at which the property is being offered by the employer to customers, in the case of property, or (b) 20% of the price offered for services by the employer to customers, in the case of services.
Section 132(a)(3): Working Condition Fringe. Working Condition Fringe is defined in Section 132(d) as any property or services provided to an employee to the extent that, if the employee paid for the property or services, the payment would be allowable as a deduction under Section 162 or 167.
Section 132(a)(4): De Minimis Fringe. De Minimis Fringe is defined in Section 132(e) as any property or service whose value is so small as to make accounting for it unreasonable or administratively impracticable.
Section 132(a)(5): Qualified Transportation Fringe. Qualified Transportation Fringe is defined in Section 132(f) as (1)(A) transportation in a commuter highway vehicle between the employee's residence and place of employment, (B) any transit pass, or (C) qualified parking, if provided by an employer to an employee. A bicycle commuter benefit will be available beginning in 2009.
Section 132(a)(6): Qualified Moving Expense Reimbursement. Qualified Moving Expense Reimbursement is defined in Section 132(g) as any amount received by an individual from an employer as payment for expenses that would be deductible as moving expenses under Section 217 if paid by the individual.
Section 132(a)(7): Qualified Retirement Planning Services. Qualified Retirement Planning Services is defined in Section 132(m) as retirement planning advice or information provided to an employee and spouse by an employer maintaining a qualified employer plan.
Section 132(a)(8): Qualified Military Base Realignment and Closure Fringe. Qualified Military Base Realignment and Closure Fringe is defined in Section 132(n) as one or more payments under Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966 to offset the adverse effects on housing values from military base realignment or closure.
Read more about this topic: Internal Revenue Code Section 132(a)
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