Tax Implications of IDR Plans

Tax Implications of IDR Plans

This module highlights the intersection of tax benefits and student loans covering the process of planning for potential consequences of loan forgiveness. It offers tax considerations associated with IDR programs and loan forgiveness.

Topic Features

  1. Review of taxation of forgiven debt
  2. Risks of section 108f
  3. Married filing separate special rules
  4. Community property states impact
  5. Foreign income exclusion

Forms, Documents, Articles

  • IRS publication 4681 cancellation of debts
  • Taxpayer Relief Act of 1997
  • IRS Community Property
  • For Student Borrowers, relief now may mean a big tax bill later
  • Disability discharge tax – Disabled Borrowers Trade Loan Debt for a Tax Bill From the IRS
  • Baltimore Sun Death of borrower 1099c
  • A Cautionary Explanation of Public Service Loan Forgiveness and Taxes
  • 1099C at death
  • IRS form 8958
  • IRS guidance for deducting home equity loan interest under new tax law
  • Tax on Death and Disability Discharges