Awarded TDIU Applied for student loan forgiveness

[Henrici]

A question for anyone who knows: I have read that there is no longer a tax burden when your student loan is forgiven (the old tax code counts it as taxable income). It seems, however, that does not apply to vets who had loans forgiven prior to a certain date. Has anyone any information on this? Thanks.

[MPsgt]

1 hour ago, Henrici said:

A question for anyone who knows: I have read that there is no longer a tax burden when your student loan is forgiven (the old tax code counts it as taxable income). It seems, however, that does not apply to vets who had loans forgiven prior to a certain date. Has anyone any information on this? Thanks.

Try this website:  

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation

[Henrici]

Thanks for the link, however, I already know I can have the loans forgiven and am in the process of doing so. I'm just trying to find out the tax implications and according to this link   https://www.studentdebtrelief.us/news/discharging-student-loans-no-longer-taxable-income  I should be exempt. 

I'm not a Trump supporter but  will give him credit for this one if it pans out.

[MPsgt]

42 minutes ago, Henrici said:

Thanks for the link, however, I already know I can have the loans forgiven and am in the process of doing so. I'm just trying to find out the tax implications and according to this link   https://www.studentdebtrelief.us/news/discharging-student-loans-no-longer-taxable-income  I should be exempt. 

I'm not a Trump supporter but  will give him credit for this one if it pans out.

Recent changes in the tax law would benefit disabled veterans whose loans are discharged under the new initiative. A provision in the new tax code waives federal income taxes on forgiven education debt for permanently disabled people. 

Historically, the IRS considered such cancelled debt as taxable income. For example, in 2017 the Lansing State Journal told the story of a veteran who had his $223,000 in student loan debt erased — only to receive a tax bill for around $63,000

Go to the IRS website to verify the current changes and if they’re applied.

I think you’re “Golden” if you’re a discharge recipient.  I think the newly apply tax laws will benefit you, too.  

Edited April 26, 2018 by MPsgt