Since you received a 1099-MISC related to this student loan repayment, then you have to report this to the IRS. But since the amount is actually considered non-taxable, then you will just need to include a negative amount for same amount titles "non-taxable student loan repayment" Both amounts will be reported on line 21 of your 1040 but will cancel each other out.
Here is how to enter
both the 1099-MISC and the negative amount for the basis information as other
miscellaneous income
To enter the
1099-MISC as miscellaneous income in TurboTax Online or Desktop, please follow
these steps:
- Once you are in your tax
return, click on the “Federal Taxes” tab ("Personal" tab in
TurboTax Home & Business)
- Next click on “Wages &
Income” ("Personal Income" in TurboTax Home & Business)
- Next click on add more income
“I’ll choose what I work on” (jump to full list) or show all income amounts
- Scroll down the screen until
to come to the section “1099-MISC and Other Common Income”
- Choose “Income from Form
1099-MISC” and select “start’
- Enter your 1099-MISC
information
- Click through the screen for
work description (do not associate this 1099-MISC with all work listed)
- Does one of these uncommon
situations apply? - None of these apply
- Did the involve work that's
like XXXX main job? - No
- How often did (you) get
income for ? Just leave as 2017 only (even if you received a similar
payment in a prior year, select 2017 only)
- Did the involve an intent to
earn money? No
Now your income will
be reported on line 21 on your 1040.
To enter the
negative amount (but only up to the amount of
income being reported on your 1099-MISC),
- Click on the “Federal Taxes”
tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages and
Income”
- Next click on "jump to
full list" or “I’ll choose what I work on” - show all income items
- Scroll down the screen until
to come to the section “Less Common Income”
- Choose "show more",
then Miscellaneous Income
- Choose "Other Reportable
Income" and enter this information here under other taxable
income
- You can title it "Non-taxable student loan repayment amount".
