The student loan repayment program is not taxable up to $5,250 in 2022. If the amount you received is less than that, your employer should not have reported the payment on any form and they need to void your 1099-MISC. If they paid more than that, the excess over $5,250 should be reported on a 1099-NEC or, more appropriately, your W-2.
Thanks Alicia
As a follow up to your reply, what happens if the employer is not able to void the 1099? As the amount is $5000 (ie less than the $5250 threshold) would the IRS then tax it?
Thanks!
Yes, amounts reported on a 1099-MISC are taxable income to the recipient. If you do not report the income on your tax return the IRS will likely adjust your return and add the taxable income.
Hi @AliciaP1
As a follow up to an earlier correspondence thread this year, it would seem my employer may likely decline to rescind the 1099-MISC form for their student loan repayment program ($5,000). This, despite having 7 months to do so given the tax exemption granted for my area (due 10/16/23).
I want to file my taxes in Turbo Tax, but each time I attempt I cannot seem to avoid having the 1099-MISC not come up as my own person business, which then is taxable. What is the best way to proceed filing my taxes with an erroneous 1099-MISC that my employer will not rescind?
I’m afraid this may trigger an audit.
Many thanks!