Posted on 02/27/2024 1:59:59 PM PST by fwdude
Though the Supreme Court blocked President Joe Biden's widespread student loan forgiveness plan, the Biden administration has still forgiven federal loans for millions of borrowers through other avenues. For most of those people, the relief is a tax-free gift from the federal government. However, depending on where borrowers live, they may owe their states.
Typically, federal student loan debt forgiven under certain programs—like income-driven repayment (IDR) plans—counts as taxable income, meaning borrowers who get relief will likely have a heftier tax bill. (Relief stemming from Public Service Loan Forgiveness, or PSLF, and some other programs is never considered taxable.)
That has temporarily changed thanks to the COVID-era American Rescue Plan. That law stipulated any federal student loan debt canceled between 2021 and the end of 2025 would not be counted toward federal taxable income.
(Excerpt) Read more at news.yahoo.com ...
If I find out someone had their loan forgiven and refused to live up to their commitment, I would fire them, and refuse to hire anyone who did.
From the article:
But there are five that are imposing tax on the forgiven debt at this time, according to the Tax Foundation: Arkansas, Indiana, Mississippi, North Carolina, and Wisconsin.
That means if you received student loan forgiveness last year and live in one of those five states, the relief will count as taxable income when you file your 2023 return.
This is a double whammy on taxpayers.
We have to cough up the money on likely worthless -studies degrees, and don’t get the return on the other money given to them.
If we can give Ukraine and Israel billions of dollars, then we can bail out student loan borrowers under the condition that the Feds will get out of the student loan business.
I agree that student-loan debt should be treated like any other debt.
Taxing, as income, the forgiven loans is proper.
It is the same as income. Loan money that is forgiven has always been taxable.
Give these winners of the deadbeat sweepstakes a choice?
Pay the loan back. Or pay income tax on it.
It is so aggravating to see what has happened to the world which previously seemed mostly sane.
Put some blame on the colleges that make claims like 90%+ of grads are employed in a relevant career field six months after graduation with a 50k average income
Indiana?!?!?!?! Oh come on, first they tax my TSP withdrawl, and now they want to tax forgiven debt? Geez!
AGREED
It is so aggravating to see what has happened to the world which previously seemed mostly sane.”
Daily Mail is showing that the 19th amendment is protecting many voters who are psychotic!
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