Are LRP payments taxable?
Yes. Loan payments are considered taxable income. To address that tax liability, NIH makes tax payments directly to participants’ IRS tax accounts at the rate of 39 percent of the loan repayment amounts (an additional tax payment at the rate of 7.5% of the loan repayment amount is also made to cover social security and FICA taxes for intramural LRP participants only). NIH may also make tax reimbursement payments to participants who document additional federal, state or local tax liabilities attributable to loan repayment or tax payment income. See the website section about The LRPs and Taxes for more information.
Yes. Loan payments are considered taxable income. To address that tax liability, NIH makes tax payments directly to participants’ IRS tax accounts at the rate of 39 percent of the loan repayment amounts (an additional tax payment at the rate of 7.5% of the loan repayment amount is also made to cover social security and FICA taxes for intramural LRP participants only).
