Taxed on loans paid by employer?

[Hamhock]

I often see CMGs like Team Health advertise contracts that will pay off 100K of your loans if you sign with them for three years.

Does the doc have to pay income tax on those loan payments?

If I did locums and asked the company to pay me only in loan repayment, would I not then be making 30% more?

Hamhock

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[okayplayer]

I often see CMGs like Team Health advertise contracts that will pay off 100K of your loans if you sign with them for three years.

Does the doc have to pay income tax on those loan payments?

If I did locums and asked the company to pay me only in loan repayment, would I not then be making 30% more?

Hamhock

Yes you pay taxes on this. It sucks

 

[sazerac]

So it isn't really loan payment, it is just extra income, taxable like all income is. I wonder if you even really need to spend it on loans, or could you just pocket it. The recipient might not even have loans, lol.

 

[RangerBob]

So it isn't really loan payment, it is just extra income, taxable like all income is. I wonder if you even really need to spend it on loans, or could you just pocket it. The recipient might not even have loans, lol.

Those I know that get loan repayment just get a check from the hospital/company, and can technically do whatever they want with it.

 

[keifernny2]

This is true for private employers, though public employers have programs with more tax advantages (and more strings / paperwork attached).