Question

Carla is a deputy sheriff. Her employer requires that she live in the county where she is employed. Housing is very expensive; so the county agreed to pay her $4,800 per year to cover the higher cost of housing. Carla must include the housing supplement in her gross income.

A. True
B. False

Answer 1

Carla must include the housing supplement in her gross income.

Step-by-step explanation:

The statement is B. False. Carla must include the housing supplement in her gross income. This means that the $4,800 per year that she receives as a housing supplement will be added to her total income for tax purposes. In other words, her gross income will include not only her regular salary but also the additional $4,800.