from TurboTaxToddL
Was this payment subject to the SEC. 10908 EXCLUSION FOR ASSISTANCE PROVIDED TO PARTICIPANTS IN STATE STUDENT LOAN REPAYMENT PROGRAMS FOR CERTAIN HEALTH PROFESSIONAL?
If so, here are the steps necessary to report the 1099-MISC and the amount to be excluded from your income.
(Since the IRS got a copy of the 1099-MISC, you have to report it on your return).
To report the income:
- Enter the 1099-Misc in the "Other Common Income" section (enter "1099misc" in the Search Box and Select "Jump to 1099misc")
- Enter "SEC. 10908. Student Loan Repayment" as the description. Indicate that it does not involve work like your main job, that it did not involve an intent to make money, and is not a payment you received in the past or expect in the future..
- The income will be reported on line 21 of your return.
To report the exclusion:
- Go to Less Common Income, Miscellaneous Income and Other reportable income (enter "other reportable income" in the Search Box and Select "Jump to other reportable income")
- Continue to the screen Other Taxable Income. Enter the description as "SEC. 10908 Exclusion" and the amount as a negative number.
A corresponding negative amount will be entered, and line 21 will be zero. (See the attached screenshot below. Click to enlarge.) (different descriptions, but still offsetting).
