Q. Do I need to pay taxes on this as another “job”?
A. Yes, probably. The IRS considers anything on a form 1099-NEC to be self employment income.
That said, it depends on why you got a 1099, who sent it to you, and what you did to
"earn" the loan forgiveness. You should ask the issuer why they sent a 1099-NEC. Usually, a 1099-C is sent for taxable loan forgiveness.
Generally, most student loan forgiveness is tax-free at the federal level (some states may tax it) through December 31, 2025. This includes programs like Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plans per a provision of the American Rescue Plan Act (ARPA). Although erroneous 1099-C's are somewhat common, for non taxable loan forgiveness, a 1099-NEC is unusual. Most likely, the issuer believes it is taxable income to you and the income is classified as non employee compensation (NEC).
