Hello All,
My wife received a 1099-MISC for a student loan forgiveness program. The program is administered by the state of Texas for the purpose of having more licensed speech pathologists in underserved public school. Based on this
IRS Publication, I believe the loan forgiveness amount should be non taxable.
Hence, my questions are two fold. First, am I making the right assumption in assuming this is non taxable?
Secondly, if it is non-taxable, how should i file that on my income taxes?
I had my taxes professionally prepared this year in order to get an answer to this specific question. When my tax preparer and I talked about it, we came to the agreement that it is non taxable. However, when I received our return, it was placed in our adjusted gross income and therefore taxable. He seems to have no idea what to do with it now and suggested leaving it out completely, which I believe would set us up to be flagged by the IRS for an Audit.
Thanks!