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Chief
I think loan forgiveness is generally considered income in the tax code, not sure why this would be different.
Conversation Starter
It does look to be exempt, at least from federal income tax.
Pro
I would eye-roll at states who did that. Republicans are traditionally anti-tax (but the GOP has admittedly lost its way from actual conservatism) and Dems would be negating its effects.
Chief
I mean cancellation of debt income is a real thing but I don’t think it would be a good idea to apply it to student loan forgiveness
Chief
Trump made student loan forgiveness untaxable.
Weird that these conservative states, which so fervently support Trump, would do this.
They are running out of feet to blow away.
Conversation Starter
Student loan forgiveness is popular. Taxing that seems like an unnecessary thorn for republicans to deal with at a time when they’re already facing headwinds and dems finally have some momentum behind them.
Why must we be punished for everything in this country
I still owe 35k after so it’s great but not the end of it. Same as my partner:
It especially shouldn’t be considered income because the forgiveness is coming on a payment value level, not all at once. But the tax appears to be happening all at once.
Enthusiast
Most loans that get canceled or forgiven or written off are supposed to be reported as income.
They are often not because the person doing the filing omits the information and the IRS has little to no means of sifting through the millions of dollars and junk debt written off by lenders every year to source every individuals $1,500.
Unfortunately in this case, FedGov is the owner of the loan, making it very easy to track.