I have a doctor client that received a 1099 (box 7) for $50,000 for signing on with a new practice. $25,000 was paid to her student loan. Most of that was interest for which she received a form for. Because of her and her husband's income they are unable to deduct the interest. She has always been a W2 employee with no unreimbursed expenses so has nothing to offset any of the 1099. I'm pretty sure I already know the answer, but is there any way to reduce this income? This 1099 combined with them not making the estimated payments I suggested has them looking at a pretty hefty tax bill.
