Yardley CPA Posted March 13, 2009 Report Share Posted March 13, 2009 I have a client who received a 1099 MISC - Other Income from Corporation for National Community Service for $4,725.50. He informed me this was sent to him in recognition of his time in AmeriCorps back in 2002. The funds were sent directly to Sallie Mae to pay off his student loan. Is this simply "Other Income" on 1040 line 21 ? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 14, 2009 Report Share Posted March 14, 2009 Yes and he may have a student loan deduction. taxbilly Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 14, 2009 Author Report Share Posted March 14, 2009 Yes and he may have a student loan deduction. taxbilly Thanks, TaxBilly. Quote Link to comment Share on other sites More sharing options...
lbbwest Posted March 14, 2009 Report Share Posted March 14, 2009 Yes and he may have a student loan deduction. taxbilly What is a student loan deduction? I was aware of a student loan INTEREST deduction for payments made after the fact, and I was aware of Tuition Deductions for the year of payment, what am I missing? Always looking to learn, lbb Quote Link to comment Share on other sites More sharing options...
Yardley CPA Posted March 14, 2009 Author Report Share Posted March 14, 2009 What is a student loan deduction? I was aware of a student loan INTEREST deduction for payments made after the fact, and I was aware of Tuition Deductions for the year of payment, what am I missing? Always looking to learn, lbb lbb...I believe he is referring to the Student Loan Interest deduction. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted March 14, 2009 Report Share Posted March 14, 2009 When he paid off his "student loan" there probably was an element of "student loan interest" which may or may not be deductible. taxbilly Quote Link to comment Share on other sites More sharing options...
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