Student Loan Forgiveness for Health Professionals
Indianapolis Personal Finance Advice
Previously, an individual’s gross income didn’t include cancellation of debt income that was attributable to the discharge of all or part
of any student loan if the discharge was made under a provision of the loan
- that all or part of the indebtedness would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers
The law has been amended to include amounts received by an individual in tax years beginning after Dec. 31, 2008; the gross income exclusion for amounts received under the National Health Service Corps loan repayment program or certain State loan repayment programs is modified to include any amount
received by an individual under any State loan repayment or loan forgiveness program
that is intended to provide for the increased availability of health care services in underserved or health professional shortage areas
as determined by the State.
Individuals who qualify and have already filed their 2009 returns should file amended returns to exclude amounts that had previously been reported as income.
If you think this retroactive income exclusion might apply to you, please give this office a call.