What are the steps to correctly enter a 1099-MISC form for an employer sponsored student loan repayment program?

[dkeone11]

After entering 1099-MISC into TT, it appears to default into another section for your own business and is taxable.

[AliciaP1]

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.  

[dkeone11]

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!

[AliciaP1]

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.

@dkeone11

[dkeone11]

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!