Is Student Loan Payment Reimbursement Taxable?

[Gsouls]

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.

[IRonMaN · Accepted solution]

Check out IRS publication 970

[Gsouls]

Thank you so much IronMan. Much appreciated. The referenced resource (IRS Publication 970) was right on. I found what I was looking for.

Thank you. My apologies for the delayed response.

[IRonMaN]

You betcha!