"Cancelled debt is reportable to the IRS.

[James48]

From the IRS:

“In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs. The canceled debt isn't taxable, however, if the law specifically allows you to exclude it from gross income. These specific exclusions will be discussed later.”-

Source: topic # 431 at the IRS

https://www.irs.gov/taxtopics/tc431

[Johnny2X2X]

1. It is tax free

As part of the American Rescue plan. All canceled student debt is not taxable through 2025.

[EYESORE 9001]

3. Hope you didn't just pee in someone's Wheaties

[Nevilledog]

4. Brilliant foresight

[questionseverything]

2. These are non taxable because of one other act

Points up

[SoCalDavidS]

5. Because Of State Taxes, There Will Probably Be A Revised Form 1099-C

Some States won't conform, meaning the forgiveness could still result in State Income Tax.

Therefore, the Government will probably still issue a Form 1099-C, but when the amount is entered into the Tax Program, it won't be subjected to Federal Income Tax.

[FoxNewsSucks]

6. I'll bet that will be red states like KS

and Floriduh.

[SoCalDavidS]

8. Actually, Floriduh Doesn't Have A State Income Tax nt

[Recursion]

7. There is an exemption through 2025

Hopefully it will get extended.

[SoCalDavidS]

9. To Do That, Democrats Will Need To Maintain Control Of House, And Obviously Senate, In November nt

[Recursion]

10. As always, electing Republicans courts disaster

Sadly that's just a constant at this point