Question

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

Forum|Forum|3 years ago
February 14, 2023
1 reply
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After entering 1099-MISC into TT, it appears to default into another section for your own business and is taxable.

TurboTax Online

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.

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dkeone11Author

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

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