If your student loans are forgiven, does that count as taxable income?
Generally, yes. Cancellation of debt is taxable income.
However, there are exceptions.
Section 108(f)(1) of the tax code says that loan forgiveness isn’t taxable when the loan was forgiven because the taxpayer worked for a certain period of time in a certain profession.
Thus, if you have $100,000 of student loans forgiven because you worked as a teacher or for a nonprofit for a certain period of time, your loan forgiveness won’t be taxable.
But if an exception doesn’t apply, and you have $100,000 of student loans forgiven, you’ll have to pay tax on an extra $100,000 of income.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.
—
SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE
* http://eepurl.com/dIaa5z
—
HIRE MICHAEL MCLAUGHLIN, PHD, CPA
* https://michaelmclaughlin.com/hire-me
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira
—
CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/
![How to Start an Indian Restaurant Business [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2024/03/mp_22065_0_0jpg.jpg)
![Introduction to Financial Literacy: Build Your Financial Foundation | Wallstreetmojo [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2024/11/mp_26557_0_0jpg.jpg)
![Top 50 Customer Service Tips | How To Give Great Customer Service [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2024/01/mp_20116_0_0jpg.jpg)
![Inspiring Short Stories | Seeking Happiness | Motivational & Inspirational Video [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2022/02/mp_8764_0_0jpg.jpg)