Which of the following is not true regarding salaries and wages?

a.Serving as an employee of a company is the most common way to earn income in the United States.

b.An employee should receive a Form W-2 from an employer providing information about the wages paid to that employee during the year.

c.The amount in Box 2 is reported directly on Line 1 of Form 1040.

d.In 2020 well over the majority of all tax returns filed included some amount for wages and salaries.

Which one of the following fringe benefits is taxable to the employee receiving the benefit?

a.Reimbursement of laser eye surgery cost to an employee who has a flexible medical spending account and who provides receipts.

b.Payment of AICPA dues by the firm which employs the CPA.

c.A 15 percent discount on a building sold to an employee of the developer.

d.A 20 percent discount on clothing to a department store employee. Even after discount, the store makes a profit.

e.A company secretary types and copies another employee's term paper.

f.None of these items listed are correct.

Which of the following is not a feature of a Qualified Tuition Program (a Section 529 plan)?

a.Distributions are tax free if used to pay qualified expenses.

b.Contributions to the plan are limited by AGI.

c.The plan may be sponsored by a state or by a private institution of higher learning.

d.Distributions from the plan are taxable and subject to a 10 percent early withdrawal penalty if not used for qualified education expenses.

e.Reasonable room and board is a qualified expense.

f.Contributions may be made to a plan in a state other than the one in which the contributor resides.