2019 Nurse Corps Loan Repayment Program

Nurses New Nurse

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Hi Everyone,

I didn't see a thread created for the 2019 Nurse Corps Loan Repayment Program yet. This will be my 3rd year applying. I'm applying as a staff RN with a HPSA score of 17. Hopefully, they open the application cycle soon.

On 5/6/2021 at 2:38 PM, Clare Morello said:

If awarded they withhold federal taxes, but not state taxes. Depending on your income they may not even withhold enough federal tax. I save a set amount each month to cover state taxes. It is a monthly payout of the award for 24 months. Hope this helps and good luck!

do you set the money aside from the additional with holdings on the W4 or do you set aside some of your own earnings to cover state taxes? Im at a loss honestly I live in NYC the taxes are crazy the award may not be worth it 

 

thank you 

 

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Specializes in NNP.
54 minutes ago, Tezra White said:

do you set the money aside from the additional with holdings on the W4 or do you set aside some of your own earnings to cover state taxes? Im at a loss honestly I live in NYC the taxes are crazy the award may not be worth it 

 

thank you 

 

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Tezra, I’m a little confused by what you mean regarding “the additional withholdings”. When you receive the NCLRP money the HRSA withholds federal tax, but not state tax.
 

First, you are responsible for the state tax and cannot use the loan money to pay it. So for me, I talked to my accountant who estimated that I needed to save $170/month to cover state taxes. I save this money out of my own income so that I’m not hit with a large bill come tax time. 
 

Second, the federal tax is an estimate of what tax bracket you are in (I’m not a tax person so am most likely not explaining this right). However, once you submit your full income (work plus loan money) it may put you in a different tax bracket requiring more federal tax. For this I just decreased my withholdings so that my paycheck was less (or they withheld more money for taxes). 
 

Definitely look into the tax ramifications and talk to a professional because it is still significant. At the end of the day I figured that I’m paying less per month for taxes than I would be for my loan payment and im paying my loans off drastically faster thanks to NCLRP. 

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thank you for clarifying 

in a state and city like NY the taxes are already pretty high. As I work through the math this may not be as much of a benefit as I originally believed. 

 

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Specializes in FNP: Urgent Care & Primary Care; RN: Med-Surg.

Even in MS, I had to pay out of pocket almost $4000 in taxes!! 

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That's ridiculous 

all of the other HRSA loan repayments are not taxable. I think we need to figure out who to contact for this to  be rectified

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Specializes in OB.

@EDRN713 Hi I am part of the 2021 nurse corp loan repayment cycle. I also noted that one of my payment wasn’t applied to correct loan. Did this effect you to get the continuation award? 

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Specializes in NNP.

Hi! As a NCLRP recipient for a third year, my gross income has been drastically affected. Because of this, it has placed me outside of the income cap for biden’s $10,000 loan forgiveness. If I wasn’t receiving the NCLRP, I would qualify. Is anyone else experiencing this and is there a way to delineate my normal gross income from the NCLRP? Any little bit helps, but I understand that I might not be able to get my cake and eat it too. Thanks!

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