Yes. The NELRP payments made to participants are regarded as income by the U.S. Internal Revenue Service and are subject to Federal taxes. The NELRP will withhold Federal income tax and Social Security and Medicare (FICA) taxes from your NELRP award and pay those taxes directly to the IRS on your behalf. The NELRP will send an annual statement of these payments (Form W-2) to all participants and to the IRS. These loan payments may also be subject to State and local income tax. Participants should check with their State or local tax authority concerning their tax liability for these payments.
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