Are you sure you are referring to a 1099-C? A 1099-C is for cancellation of debt income.
It would not be appropriate unless you were NOT paying back the subsidy loan and the corporation was writing off the debt.
The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author (who is only admitted to practice law in the State of California). For specific advice about your particular situation, consult your own attorney.
As Mr. Chen explains, a 1099-c is for debt cancellation. Yes if the debt is cancelled then the employer can send a 1099-c to you.
This is general legal information, not intended to apply to your specific case. And I may not be licensed to practice in your particular state. Under Federal Law, I am a debt relief agent.
If you are required to actually pay these back, I am not sure how they are income. But the reality is, for tax purposes these are clearly not being treated as loans. If you cannot take deductions when you pay these amounts back, you should not be forced to recognize income when you receive them. If you have a legal written obligation to pay these "loans" back, they are not income at all. But there are so many quirky industry specific accepted practices that you should speak with the CPA that prepares your taxes. This does not seem like the accurate treatment of a bona-fide loan.