Tanya's Employer Offers a Cafeteria Plan That Allows Employees to Choose

Multiple Choice

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2020, Tanya selected $3,480 ($290 per month) of parking, $1,720 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?

A) $0
B) $1,040
C) $3,480
D) $4,280