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Will Forgiven Student Loan Debt Be Taxable?

Started by Epoch-Times-Bot, Dec 08, 2022, 03:00 PM

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Epoch-Times-Bot

Dec 08, 2022, 03:00 PM
Will Forgiven Student Loan Debt Be Taxable?

By Kelley R. Taylor
From Kiplinger’s Personal Finance
Question: I'm hopeful that my student loan debt will be forgiven if President Biden's plan makes it through court challenges. But if it does, am I going to be hit by a tax bill?
Answer: That depends on where you live.
Student loan debt that's canceled under President Biden's program will not be taxed by the federal government. But it still might be taxed by your state.
Generally, the IRS has considered forgiven debt to be taxable for federal income tax purposes. But the American Rescue Plan Act of 2021 effectively made student loan forgiveness nontaxable for federal income tax purposes through 2025....

Source: Will Forgiven Student Loan Debt Be Taxable?

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