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 can exclude the $4,800 housing supplement from gross income because she is required to live in the high cost area.

Question

Quizplus · Accepted Answer

The $4,800 housing supplement is considered additional compensation and is not excludable from gross income, even if the employer requires her to live in a high-cost area.

Carla Is a Deputy Sheriff