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Biden's new student loan forgiveness plan (buying votes) would cost an extra $84 billion


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  • Vambo changed the title to Biden's new student loan forgiveness plan (buying votes) would cost an extra $84 billion

Fun fact: I know two people who had their loans forgiven. It gets treated as if you suddenly got that amount of money as income in the eyes of the IRS haha. So instead of owing Mohela, the IRS gets to spread your asscheeks to the tune of whatever tax bracket for that year that your forgiven loans pushes you into. It's sold as financial freedom but really a cashier is now making 150k according to the IRS.

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1 hour ago, LogicIsForSquares said:

Fun fact: I know two people who had their loans forgiven. It gets treated as if you suddenly got that amount of money as income in the eyes of the IRS haha. So instead of owing Mohela, the IRS gets to spread your asscheeks to the tune of whatever tax bracket for that year that your forgiven loans pushes you into. It's sold as financial freedom but really a cashier is now making 150k according to the IRS.

Fun fact: The America Rescue Plan Act of 2021 made an exemption from federal income taxes for loans that are discharged between Jan 1 2021 and Dec 31, 2025. Those two people need to find a new tax guy.

How will a student loan payment count adjustment affect my taxes? | Federal Student Aid

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12 minutes ago, cccjwh said:

Fun fact: The America Rescue Plan Act of 2021 made an exemption from federal income taxes for loans that are discharged between Jan 1 2021 and Dec 31, 2025. Those two people need to find a new tax guy.

How will a student loan payment count adjustment affect my taxes? | Federal Student Aid

I stand corrected. It's two guys I work with through the VA who had their loans discharged but not through PSLF or an IDR plan. Not sure if that had any bearing on it or they just legitimately are tax tards.

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1 hour ago, LogicIsForSquares said:

I stand corrected. It's two guys I work with through the VA who had their loans discharged but not through PSLF or an IDR plan. Not sure if that had any bearing on it or they just legitimately are tax tards.

That is correct. Army paid off my students load (the principle anyways). "Luckly" I was deployed for 2 out of the 3 years they made the payments. So for two years I didn't have to pay taxes on it.

 

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