in lieu of 1099 misc

[christianlove]

What is the name of your state? Louisiana

My husband is an RN and qualified for a nursing education loan repayment program from the Department of Health and Human Services. They pay back about 80% of his student loans for working in a hospital for three years that has a "critical shortage". He receives a monthly payment from the DHHS. At the end of the year the DHHS sent a paper providing the amount they paid my husband for the year and stated they were sending this in lieu of a 1099 misc. My question is how to treat it tax wise? Should I report it on a 4137 or do a Schedule C? I don't feel that he should have to report it as self employment, but someone from turbotax thinks that I should?

 

[Snipes5]

It isn't self employment. It's "other income", it goes on line 21. Unless it's listed on a 1099-Misc as "Non-employee Compensation", then it goes on Shedule C, and gets reported as Self-Employment. If your husband thinks it's being reported incorrectly, he'll need to address that with DHHS.

In any event, it wouldn't go on a 4137, that's normally for unreported or allocated tips, for Servers, Waitresses, and Casino Workers.

Snipes