Some healthcare workers may be eligible for
Under the new law any state loan repayment or loan forgiveness program intended to increase the availability of health care services in under-served areas is now eligible for exemption from federal income tax. The law makes the exemption retroactive to the beginning of 2009. If an eligible healthcare worker has already filed their 2009 tax return he or she can file an amended return to request a refund of the taxes paid on loan forgiveness income. Additionally if the loan repayment was reported as taxable wages on a W-2, the worker can also have their employer request a refund of the FICA taxes paid on the loan forgiveness. (both employer and employee portions of the FICA tax are refundable)
Blog post
New Tax Break for Healthcare Workers
Filed Under:
Human Capital