President Biden’s student loan forgiveness plan would eliminate $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000. It would also cancel an additional $10,000 for those who received federal Pell Grants to attend college.
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I'm surprised Tennessee's not all over this. There's no State Income Tax, so they tax the hell out of everything else. Hell, we even have the second highest beer tax here - that's right, a beer tax.
You can read about that HERE
The IRS considers any loan forgiveness as income. Many states piggyback off the 1040 form and would consider it to be income also.
ReplyDeleteYup, and it's due April 15. Know several people who have had to take out a loan to pay their taxes.
DeleteA 90% tax would seem reasonable.
ReplyDeleteHeck the IRS even requires you pay tax on money you can't ever get...they charge a tax for Imputed Income on life insurance provided by your employer above $50k. Not if you die...they take a HUGE chunk of that. They consider that the value of any coverage over the $50K is 'income', even though you and no one else will ever see any benefit from it. Oh, and most employers don't let you opt out of the 'extra' coverage, it's an all or nothing proposition.
ReplyDeleteSouth Carolina's DOR announced that it will not tax the student loan free-ride
ReplyDelete-WDS
More lawsuits for the lawyer class to make money.
DeleteGiven that it's Tennessee, surely you know someone with a still that'll sell you untaxed liquor?
ReplyDeleteNo state income tax, and the total tax burden is in the bottom quintile! And because we don't have a state income tax, the state don't get a copy of the federal form. Yeah, it's tough here.
ReplyDelete