Jimador

After following this for months and months, we finally got the rejection for my wife's application. I went to log on to the HRSA site and was switched from under review to non selected for the award. Oh well...time to quit stressing and start focusing on something else. Looks like I get to break the news to her at dinner before she starts her 4 straight night shifts. Fun, fun...

Still waiting on the first email for my wife's application....and I am starting to think that it isn't coming. It would be nice if they just released them on one day unless of slowly letting them trickle out.

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."