Which of these statements about benefit programs is TRUE? a. Most employee benefit programs do not have

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Question:

Which of these statements about benefit programs is TRUE?

a. Most employee benefit programs do not have a major impact on a taxpayer's return.

b. Generally, taxpayers with higher income benefit more from programs that lower their AGI. Taxpayers with lower income may reduce refundable tax credits if they lower their AGI.

Priya is 22 years old and just graduated. She got her first job with a multinational company, Conglommo, Inc., and has come to you for her first tax return. She has questions about what benefits she should be looking at. How would you determine the best options to recommend?

a. Ask Priya what options are available to her and go over the choices with her. Use What If mode in BlockWorks to give her the most accurate possible numbers and make a note in the return to follow up with her next year to adjust the selections as needed.

b. Generally, all large companies have the same benefits, so you can assume that Priya will have access to any program you might suggest. Pick out some of your preferences and share them with her.