According the the Affordable Care Act (ACA), money received from a State Loan Repayment Program is not considered taxable income. How do I enter the information on my 1099-Misc so that it will conform with the law below?
SEC. 10908. EXCLUSION FOR ASSISTANCE PROVIDED TO PARTICIPANTS
IN STATE STUDENT LOAN REPAYMENT PROGRAMS FOR
CERTAIN HEALTH PROFESSIONALS.
(a) IN GENERAL.—Paragraph (4) of section 108(f) of the Internal
Revenue Code of 1986 is amended to read as follows:
‘‘(4) PAYMENTS UNDER NATIONAL HEALTH SERVICE CORPS
LOAN REPAYMENT PROGRAM AND CERTAIN STATE LOAN REPAY- MENT PROGRAMS.—In the case of an individual, gross income
shall not include any amount received under section 338B(g)
of the Public Health Service Act, under a State program
described in section 338I of such Act, or under any other
State loan repayment or loan forgiveness program that is
intended to provide for the increased availability of health
care services in underserved or health professional shortage
areas (as determined by such State).’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to amounts received by an individual in taxable years
beginning after December 31, 2008.
