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Is Student Loan Payment Reimbursement Taxable?
Hello Great Minds,
I am checking in to see if anyone is aware of the tax treatment of the Physicians for a Healthy California Program (url insert below). This CA program reimburses physician's up to $300K to help pay off their student loans in return for 5 yr commitment to serve underserved population.
My question is, if a physician gets reimbursed for say 50K in 2021 for his student loan payments;
a) is this amount taxable?
b) How does IRS treat such an arrangement?
Any IRS resource to read more about it will be greatly appreciated.
Physicians for a Healthy California > Programs > CalHealthCares (phcdocs.org)
Thank you in advance for your response.
