Borrowers whose student loans were forgiven in 2023 may owe state taxes

The American Rescue plan exempted student loan forgiveness from taxes through 2025, but not all states followed suit.

Do You Owe Tax on Forgiven Debt? - CNBC

How debt relief works ; Most canceled debt is taxable ; How debt forgiveness shows up on your credit report ; Other options for paying off debt

Will You Owe Taxes If Your Student Loan Is Forgiven? – Forbes Advisor

Are there taxes on student loan forgiveness? It's an important question, with the U.S. Supreme Court set to rule soon on President Biden's student debt relief plan.

What Are the Tax Consequences of Debt Settlement?

Debt settlement has a number of potential downsides, including that you'll owe taxes on your forgiven debts.

Topic no. 431, Canceled debt – Is it taxable or not? | Internal Revenue Service

If you borrow money and are legally obligated to repay a fixed or determinable amount at a future date, you have a debt. You may be personally liable for a debt or may own a property that secures a debt for which you may or may not also be personally liable. If your debt is forgiven or discharged for less than the full amount owed, the debt is considered canceled for the forgiven or discharged amount that you no longer need to pay. Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're oblig ...

Are Personal Loans Considered Income?

debt owed. This is known as loan forgiveness. In the event a loan is forgiven, the proceeds... This rule has a few exceptions of its own, so if you owe taxes on forgiven personal loan debt...

13 states may hit borrowers with state tax liability on forgiven student loans

More from Personal Finance: What Biden’s student loan forgiveness means for your taxes Are your student loans eligible for federal forgiveness? How to check if you qualify for $20,000 in...

How to File Back Taxes

Be sure to include any taxes owed from prior tax years with your payment. Your unpaid balance... 15 11 Are Back Taxes Ever Forgiven? Back taxes are not forgiven per se. The IRS has 10 years...

Tax Relief for Victims of Terrorist Attacks

4 Amount of Tax Forgiven. 5 Refund of Taxes Paid. 11 How To Claim Tax Forgiveness. 11 Estate Tax Reduction. 13 Structured Settlement Factoring Transactions. 13 Illustrated Worksheets B and...

IRS to waive $1 billion in penalties for people and firms owing back taxes for 2

back taxes that total less than $100,000 per year for tax years 2020 and 2021. Nearly 5... back taxes, and received an initial balance-due notice between Feb. 5, 2022 and Dec. 7, 2023. If...