• evatronic
    link
    fedilink
    arrow-up
    8
    ·
    1 year ago

    Part of the American Rescue Plan specifically exempts amounts forgiven through 2025 – https://www.congress.gov/bill/117th-congress/house-bill/1319/text

    Section 9675 (a):

     `(5) Special rule for discharges in 2021 through 2025.--
     Gross income does not include any amount which (but for this 
     subsection) would be includible in gross income by reason of the 
     discharge (in whole or in part) after December 31, 2020, and 
     before January 1, 2026, of--
    

    … blah blah federal college loans only. But the jist is, no, there’s no “tax bomb”, that’s a red herring.