Student Loan Forgiveness for Health Professionals
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.
New Law: 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.
Amendment Opportunity?
Individuals who qualify and have already filed their 2009 returns should file amended returns to exclude amounts that had previously been reported as income.
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If you think this retroactive income exclusion might apply to you, please give this office a call.
