Were they able to pass that law or whatever which created a period in which Income based repayment forgiveness was tax free? Typically this forgiveness comes with a tax bill on the forgiven amount as income.

[–] Aryuproudomenowdaddy@hexbear.net 16 points 2 years ago (1 children)

That's fucking bleak.

[–] Parsani@hexbear.net 17 points 2 years ago

yea

The IRS will negotiate down though if you prove you can't pay it

[–] the_itsb@hexbear.net 4 points 2 years ago

They did, this was the very first thing I thought of when I realized mine (and my husband's) had been forgiven, because it was a very scary thing to look forward to with we signed the Income-Based Repayment paperwork. Student debt forgiven through 2025 will not be federally taxed, but borrowers in Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina and Wisconsin may have to pay state tax on the forgiven debt.