Hi @Carl and @Rainman12 , Thanks for replying.
My program is sponsored by a government entity, for 3 years, to provide service in a area with healthcare shortage. It is not the NHSC or state NHSC (SLRP) or PSLR program. The award goes directly to my lender, I will not get any money directly.
It is for money I need to pay back, but the government agency states that it "may be considered personal income" in the contract.
It is the exact same program described by the IRS Memorandum. Link Here: https://www.irs.gov/pub/irs-wd/1147001.pdf but, a different states and in the year 2019.
Also, this program that I am in, started in 2005, before the tax provision (see below) was implemented in 2008. The program has never revised their policy to be compliant with the tax provision, due to few people applying to it.
Shttps://www.irs.gov/publications/p970#en_US_2018_publink[phone number removed]tudent loan repayments made to you are tax free if you received them for any of the following.
- The National Health Service Corps (NHSC) Loan Repayment Program (NHSC Loan Repayment Program).
- A state education loan repayment program eligible for funds under the Public Health Service Act.
- Any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas (as determined by such state).
My question is, how do I report it and how do I excluded my "wages/personal income"? Also, who would be able to tell me definitely if what I am doing is correct or not?
Thanks!
