Student loan forgiveness can eliminate a substantial balance, but it might also create an unexpected tax bill. The temporary federal tax exemption created by the American Rescue Plan Act expired December 31, 2025. As a result, federal student loan debt forgiven through an income-driven repayment (IDR) plan in 2026 or later is generally treated as…
How to Handle Your Student Loan Forgiveness 1099-C Tax Form
Student loan forgiveness can eliminate a substantial balance, but it might also create an unexpected tax bill. The temporary federal tax exemption created by the American Rescue Plan Act expired December 31, 2025. As a result, federal student loan debt forgiven through an income-driven repayment (IDR) plan in 2026 or later is generally treated as…
The post How to Handle Your Student Loan Forgiveness 1099-C Tax Form appeared first on Student Loan Planner.
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