Today's Date: August 5, 2021
Texas Original Compassionate Cultivation Drives Over 180,000 Miles to Deliver Medical Cannabis Across Texas   •   Simplex Health Launches FITNatal   •   Jimmy Placa of Davion Inc. Wins EY Entrepreneur of the Year 2021 New Jersey Award   •   New Amsterdam FC Announces Hofstra Soccer Stadium As Home Venue For Fall 2021 Season   •   New agreement to strengthen the early learningand child care system in Quebec   •   Open Mortgage Appoints Windi Gerber as Senior Vice President of Human Resources   •   Pacific Airshow Amps Up the Thrills with New Afterburner Music Festival   •   13th Floor Entertainment Group Brings Haunted House Thrills to The Old Joliet Haunted Prison   •   WiSci Morocco Girls STEAM Camp Kicks Off Virtually August 9   •   Greenwood Launches Greenwood Studio to Produce Finance and Business Shows and Podcasts for Black and Latino Audience   •   Karma and Luck Celebrates Childhood Curiosity and Spirituality with First-Ever Children's Collection   •   Regions Next Step Expands Financial Wellness Offerings for Students via iGrad and WeAreTeachers Platforms   •   United Way of Metro Chicago announces United Neighborhoods Equity Fund   •   Vericast Back-to-School Survey Finds Parents Eager to Spend   •   5W Public Relations Continues Expansion of Parent, Child, & Baby PR Practice Area   •   For First Time in TV History, Combate Global Knocks Out the UFC Competition   •   HITN, Teachley and Sirius Thinking to Produce Game-Changing Narratives for Bilingual Math Education   •   Jeunesse Awarded 7 Globee Awards in 2021 Golden Bridge Competition   •   SYNLawn® Hosts Hundreds of Guests at "Farmers on the Green" STEM Educational Event at Boys and Girls Club of Harlem   •   General Assembly Pizza Launches New Website, Expanded eCommerce Offerings
Bookmark and Share

IRS Offers Greater Incentive To Practice Medicine In Underserved Communities

 

WASHINGTON — As part of a larger Administration announcement on efforts to strengthen the health care workforce, the Internal Revenue Service today announced that under the Affordable Care Act health care professionals who received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income tax returns as well as an annual tax cut going forward.

“Doctors and nurses who choose to practice in underserved areas make a great contribution to their local communities,” Commissioner Doug Shulman said. “By expanding the tax exclusion for student loan forgiveness, the Affordable Care Act provides an even greater incentive to practice medicine in areas that need it most.”

The Affordable Care Act included a change in the law, effective in 2009, that expands a tax exclusion for amounts received by health professionals under loan repayment and forgiveness programs. Prior to the new law, only amounts received under the National Health Service Corps Loan Repayment Program or certain state loan repayment programs eligible for funding under the Public Health Service Act qualified for a tax exclusion. 

The Affordable Care Act expands this tax exclusion to include any state loan repayment or loan forgiveness programs intended to increase the availability of health care services in underserved areas or health professional shortage areas and makes this exclusion retroactive to the 2009 tax year.

Health care professionals participating in these programs who have reported income from repaid or forgiven loan amounts on their 2009 returns, possibly after receiving a Form W-2, Wage and Tax Statement, or Form 1099, may be due refunds. Those who believe they qualify for this relief may want to consult their state loan program offices to determine whether the program is covered by the new law.

Health care professionals who have not yet filed for 2009 need not report eligible loan repayment or forgiveness amounts when they file. Those who have already filed may exclude eligible amounts by filing Form 1040X, Amended U.S. Individual Income Tax Return. This form can be downloaded from this website or obtained by calling the IRS toll-free at 1-800-TAX-FORM (1-800-829-3676). Individuals filing Form 1040X to claim this exclusion should write “Excluded student loan amount under 2010 Health Care Act” in the Explanation of Changes box.

Health care professionals may request an employer or other issuer to provide a Form W-2c, Corrected Wage and Tax Statement, or 1099 and may attach the corrected form to the Form 1040X. However, the Form 1040X may also be filed without attaching a corrected form.

An individual whose employer withheld and paid taxes under the Federal Insurance Contributions Act (FICA) on payments covered under the new exclusion may request that the employer seek a refund of withheld FICA on the employee’s behalf. And because employers also pay a portion of the FICA tax, the employer also may also be entitled to a refund.

To obtain a refund, an employer should file a separate Form 941-X, Adjusted Employer's QUARTERLY Federal Tax Return or Claim for Refund, for each Form 941, Employer’s Quarterly Federal Tax Return, which needs to be corrected. An employer filing a Form 941-X is also required to file a Form W-2c for each employee who benefits from the exclusion.

Internal Revenue Service · 1111 Constitution Ave. N.W. · Washington DC 20535 · 800-439-1420

 



Back to top
| Back to home page
Video

White House Live Stream
LIVE VIDEO EVERY SATURDAY
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Video

LIVE BROADCASTS
Sounds Make the News ®
WAOK-Urban
Atlanta - WAOK-Urban
KPFA-Progressive
Berkley / San Francisco - KPFA-Progressive
WVON-Urban
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
WADO-Spanish
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
WOL-Urban
Washington - WOL-Urban

Listen to United Natiosns News