Student Loan Forgiveness? Not without paying taxes on the "benefit."

[Fantine]

We are talking about students who faithfully paid their "income-based" loan payments for a set period of time. If the student pays a suitable percentage of his income until the expiration period, the rest of the loan is forgiven.

But the Trump Administration is unforgiving--especially, as we all know, to the poor and middle-class. I don't see any wealthy entrepreneurs paying taxes on their pandemic loan forgiveness.

As of 2026, they will receive tax bills for the amount of the forgiven loan--estimated to cost them $7 to $12,000.

These little "gotchas" pass unnoticed...but when they are added up, any tax cuts will evaporate for the 99%. The Labor Department is making lots of worker-unfriendly changes. Stay tuned. I'll be looking them up.

MSN

 

[Always in His Presence]

We are talking about students who faithfully paid their "income-based" loan payments for a set period of time. If the student pays a suitable percentage of his income until the expiration period, the rest of the loan is forgiven.

But the Trump Administration is unforgiving--especially, as we all know, to the poor and middle-class. I don't see any wealthy entrepreneurs paying taxes on their pandemic loan forgiveness.

As of 2026, they will receive tax bills for the amount of the forgiven loan--estimated to cost them $7 to $12,000.

These little "gotchas" pass unnoticed...but when they are added up, any tax cuts will evaporate for the 99%. The Labor Department is making lots of worker-unfriendly changes. Stay tuned. I'll be looking them up.

MSN

That isn’t Trump. That is the IRS set up under the weakest, worst President in American history. Biden.

There have been no changes to IrS policy in the six months President Trump has been in office.

 

[Fantine]

That isn’t Trump. That is the IRS set up under the weakest, worst President in American history. Biden.

There have been no changes to IrS policy in the six months President Trump has been in office.

Please glance at the link next time. This tax was included in the Big (you can call it Beautiful, I won't) Bill. The very first sentence contained that information.

 

[iluvatar5150]

From the article:

The average loan balance for borrowers enrolled in an IDR plan is around $57,000, Kantrowitz said. For those in the 22% tax bracket, having that amount wiped out would trigger a tax burden of over $12,000, Kantrowitz estimates. Lower earners, or those in the 12% tax bracket, would still owe around $7,000.

For the love of god, no.

According to the article, this was only made tax free in 2021 and was originally set to expire in 2025. Trump didn’t extend it. I’m ambivalent about the policy itself, but either way, I wouldn’t get too worked up about it.

 

[Hans Blaster]

From the article:


For the love of god, no.

According to the article, this was only made tax free in 2021 and was originally set to expire in 2025. Trump didn’t extend it. I’m ambivalent about the policy itself, but either way, I wouldn’t get too worked up about it.

It's not like Trump is going to forgive any student loans next year when they are taxable, anyway.

 

[FenderTL5]

There have been no changes to IrS policy in the six months President Trump has been in office.

Incorrect, HR1 that Trump signed into law on July 4th changed a whole host of IRS tax laws. Linkage to H&R Block overview

 

[Always in His Presence]

Incorrect, HR1 that Trump signed into law on July 4th changed a whole host of IRS tax laws. Linkage to H&R Block overview

and which one deals specifically with student loan forgiveness?

How does that differ from any other time you receive a monetary gift and need to declare it on your taxes.

 

[FenderTL5]

and which one deals specifically with student loan forgiveness?

How does that differ from any other time you receive a monetary gift and need to declare it on your taxes.

In post #2 you said,

There have been no changes to IrS policy in the six months President Trump has been in office.

That's still untrue. The signing of HR1 by Trump on July 4, 2025 marked several changes to tax laws.
If you now want to change, clarify, or add some provisos to what you said previously, that's your prerogative, but it doesn't change the untruth of post 2.

 

[Always in His Presence]

In post #2 you said,

That's still untrue. The signing of HR1 by Trump on July 4, 2025 marked several changes to tax laws.
If you now want to change, clarify, or add some provisos to what you said previously, that's your prerogative, but it doesn't change the untruth of post 2.

and in post #7 I asked the following

and which one deals specifically with student loan forgiveness?

How does that differ from any other time you receive a monetary gift and need to declare it on your taxes.

Thoughts?