Audrey incurred $200,000 of student loan debt completing medical school. Under h
ID: 2459011 • Letter: A
Question
Audrey incurred $200,000 of student loan debt completing medical school. Under her agreement to provide medical services to an underserved area for a specified time period, her student loan debt was canceled. How much, if any, of the canceled debt is taxable to her?
Selection one:
a-$100,000
b-$50,000
c-$200,000
d-$0
What is the maximum dollar value of all non-qualified plan awards received by a taxpayer from an employer during a year that usually may be excluded from income?
Selection one:
a-$1,600
b-$2,500
c-$50
d-$400
Explanation / Answer
For Audrey, $0 would be taxable to her. 2010 health care reform law also allowed loans to be forgiven for health care professionals if they worked for a minimum amount of time in underserved areas. So option D( $0 ) is correct.
If the awards you receive is non-qualified, the value of the other non-qualified awards that your employer gives you over the course of the year has to be $400 or less.so option D ( $400 ) is correct.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.