1099-Misc received for student loan repayment assistance

[Blue monkey]

I received a 1099-Misc for  student loan repayment assistance from a government program for being a volunteer firefighter. It is less than $5000 and it’s being counted as federal income. It is being sent directly to me only after I provide proper documentation of the exact amounts paid to my lender. I was told this would be non taxable, I am very confused.

[Hal_Al]

You'll have to ask the organization that issued the 1099-Misc.  If they issued a 1099-Misc, they probably think it's taxable.  Some plans, like you describe, are Taxable.  The $5250 limit for tax free assistance is for employer plans and that doesn't sound like what you got.

"However, unlike other options, student loan forgiveness under an income-driven repayment plan is taxable."

https://www.savingforcollege.com/article/student-loan-forgiveness-for-first-responders