Do I have to account for my federally funded student loan, discharged in 2022 when the "American Rescue Plan" passed in 2021 states the discharged loan is not income?

Forum|Forum|2 years ago
April 15, 2023
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PattiF

No, you do not have to account for your federally funded student loan on your tax return.

The IRS does not require reporting on certain loans that were discharged. Discharged student loan debt will no longer be treated as income, meaning that these students will no longer have to pay any taxes on this discharged debt. The change, however, will expire at the end of 2025, unless renewed by an act of Congress. Both public and private student loans are subject to the new rule.

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kleinhrwAuthor

Thank you for the information. Very helpful. I was very concerned since the bank that was servicing the loan sent 1099C to the IRS.

Parsons703

How did you make out for your taxes last year? Since you didn't report this as income under ARPA- but were sent a 1099C (as was the IRS)- did you ever receive an IRS notice or any issues receiving your refund? Thanks for your guidance! A whole bunch of us are dealing with this with very minimal guidance from Discover.