Question

LeeAnn has been teaching in a rural public school for five years. For her service in a high-needs area, her student loans in the amount of $15,000 are forgiven. LeeAnn must include the $15,000 as part of her gross income.

A) True
B) False

Answer 1

The statement is True. When LeeAnn's student loans in the amount of $15,000 are forgiven, she must include that amount as part of her gross income.

Step-by-step explanation:

The statement is True.

When LeeAnn's student loans in the amount of $15,000 are forgiven, she must include that amount as part of her gross income. This is because forgiven loans are typically considered taxable income.

For example, if LeeAnn's annual income is $50,000 and her student loans are forgiven, her new gross income for tax purposes will be $65,000 ($50,000 + $15,000).