NELRP is there a thread?

Taxes....

I have been following this board posting for awhile on behalf of my wife. I am a CPA and she is a first year RN who has applied for NELRP this year. The Federal government treats this money just as it would a paycheck so there will be Social Security and Medicare withheld (at 4.2% and 1.45%, respectively), along with income taxes. If you live in a state with income taxes (like us in Oregon) then they were will be state taxes withheld too. Normally a company is required to have you fill out a W-4 to figure out how much to withhold for income taxes. I assume it is the same way with this money. Remember the more exemptions you claim the less they withhold.

When spring time comes around and it is time to do your taxes it will be reported under wages and taxed accordingly. For our situation and based on the percentages we have withheld from our checks if we get this money we will have 39.65% withheld from the payments (25% for federal income taxes, 9% for Oregon income taxes, 4.2% for Social Security, and 1.45% for Medicare).

This is from the HRSA.gov website:

"TAX NOTICE: NELRP payments are subject to Federal taxes. NELRP will withhold Federal income tax and Federal Insurance Contributions Act (FICA) tax (Social Security and Medicare) from a participant’s NELRP award and pay those taxes directly to the IRS on the participant’s behalf. All NELRP payment and Federal taxes withheld will be reported to the participant and the IRS on a Form W-2 after the end of the tax year. These loan repayments may also be subject to State and local income taxes. All loan repayments paid to the participant after Federal tax withholding must be used by the participant to repay qualifying educational loans. A participant’s payments to his/her lenders or holders are subject to periodic verification by the NELRP."

Taxes....

I have been following this board posting for awhile on behalf of my wife. I am a CPA and she is a first year RN who has applied for NELRP this year. The Federal government treats this money just as it would a paycheck so there will be Social Security and Medicare withheld (at 4.2% and 1.45%, respectively), along with income taxes. If you live in a state with income taxes (like us in Oregon) then they were will be state taxes withheld too. Normally a company is required to have you fill out a W-4 to figure out how much to withhold for income taxes. I assume it is the same way with this money. Remember the more exemptions you claim the less they withhold.

When spring time comes around and it is time to do your taxes it will be reported under wages and taxed accordingly. For our situation and based on the percentages we have withheld from our checks if we get this money we will have 39.65% withheld from the payments (25% for federal income taxes, 9% for Oregon income taxes, 4.2% for Social Security, and 1.45% for Medicare).

This is from the HRSA.gov website:

"TAX NOTICE: NELRP payments are subject to Federal taxes. NELRP will withhold Federal income tax and Federal Insurance Contributions Act (FICA) tax (Social Security and Medicare) from a participant’s NELRP award and pay those taxes directly to the IRS on the participant’s behalf. All NELRP payment and Federal taxes withheld will be reported to the participant and the IRS on a Form W-2 after the end of the tax year. These loan repayments may also be subject to State and local income taxes. All loan repayments paid to the participant after Federal tax withholding must be used by the participant to repay qualifying educational loans. A participant’s payments to his/her lenders or holders are subject to periodic verification by the NELRP."

Thank you for the information!

Although the award is subject to state and federal taxes, NELRP only takes out federal taxes (I'm assuming this also includes social security and Medicare). It is our responsibility to claim this "income" when we file taxes, and I'm sure we will end up paying in a little something when it comes to state taxes. Some people from last year said they claimed 0 and did not have to pay anything in come tax time. Hopefully we'll all be so lucky!

Emily, I don't understand your situation either, have you checked your spam folder?

Yep my status says under review ... No one from my department at work has heard anything either but more of then are crnas with larger incomes ... I have been checking like crazy I did notice that when some of the NPs were getting emails some lower debt to income ratio people got emails before ones with higher ratios. Hopefully there is an unorganized way they go out I am still praying ... Hope to hear something soon

Yep my status says under review ... No one from my department at work has heard anything either but more of then are crnas with larger incomes ... I have been checking like crazy I did notice that when some of the NPs were getting emails some lower debt to income ratio people got emails before ones with higher ratios. Hopefully there is an unorganized way they go out I am still praying ... Hope to hear something soon

I hope you get an email tomorrow! It doesn't make sense, but then again, they have to look at everyone's so maybe they just haven't gotten to yours yet!!! Stay positive:)

Yep my status says under review ... No one from my department at work has heard anything either but more of then are crnas with larger incomes ... I have been checking like crazy I did notice that when some of the NPs were getting emails some lower debt to income ratio people got emails before ones with higher ratios. Hopefully there is an unorganized way they go out I am still praying ... Hope to hear something soon

If you don't get an email tomorrow, give them a call. Ususally they can't tell you much of anything, but every now and then, someone very helpful answers the phone and gives out information. Can't hurt to try to find out why others with lower ratio have heard. Either way, keep believing, the emails really just starting cranking out this past week, so I'm sure theres a batch setto come out this next week as well.

I'm going to be checking email like crazy today!!!! :bowingpur

I'm gonna call them:uhoh21:

WHO KNOWS? A very nice lady told me that we would hear by 10/30???? She did say it would be by email.......now I'm really a wreck????? All I know to do is a lot of hoping and praying?????

WHO KNOWS? A very nice lady told me that we would hear by 10/30???? She did say it would be by email.......now I'm really a wreck????? All I know to do is a lot of hoping and praying?????

That's just her standard line that she has to say. Someone else got a man who said that if we had signed our contract, it's pretty much a done deal, and we'd probably hear this week. I know you've been thru this before, and it's not a done deal until the email is recieved, but I know your going to get your email very soon . So please don't keep banging your head against the wall, it's very upsetting to watch .

Hey all! Hope everyone's well. Just wanted to see if any of you RNs still had a status of submitted?? My application still says submitted only. I called and they said that they have been having a really hard time changing statuses lately. But judging from all of you that are posting, your statuses have obviously been changed. 110% is my debt ratio. I feel like it should have been changed by now!!

That's just her standard line that she has to say. Someone else got a man who said that if we had signed our contract, it's pretty much a done deal, and we'd probably hear this week. I know you've been thru this before, and it's not a done deal until the email is recieved, but I know your going to get your email very soon . So please don't keep banging your head against the wall, it's very upsetting to watch .

Thank you for the positive attitude!!!! I won't really hit my head because I don't like pain......I've just been anxious all weekend.