Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International


Scholarship and Fellowship Income

Loan Repayment Assistance Programs (LRAPs)

Health care professionals might receive education loan repayments; they are not taxable if they are made by:

  • The National Health Service Corps Loan Repayment Program
  • A state education loan repayment program eligible for funds under the Public Health Service Act, or
  • Any other state loan repayment or loan forgiveness program that is intended to provide for the increased availability of health services in underserved or health professional shortage areas

Ministers or Other Members of the Clergy

The ministry profession presents unique issues, such as the parsonage/housing allowance, whether earnings are covered under FICA or SECA (self employment tax), and the rules for being exempt. Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers, covers this topic. This information is provided for awareness only and is out of scope for the VITA/TCE programs. Taxpayers who have these issues should be referred to a professional tax preparer.