Submitted by Anachronisticpoet t3_y7dm9w in LifeProTips
Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina and Wisconsin currently have laws that allow debt relief to be taxed. They may adjust the laws to make an exception for this program, but be prepared in case they don't. You could be taxed up to $500 on your debt relief.
California, for example, is in the process of adjusting this, but nothing is set in stone.
"It depends on state conformity with federal laws, including the provision from the American Rescue Plan of 2021 that makes student loan forgiveness federally tax-free through 2025."
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For more information and an estimate of possible taxes per state, read here.
Phillyredsox t1_istwm6s wrote
Can we just once have something that doesn’t secretly fuck us?