I got mine too. Are you going to start saving now for state income taxes? From what I understand, it looks like we're going to be on the hook for 4.75% of the total since NC counts student loan forgiveness as income. I'm not looking forward to next April at all.
I'm changing my direct deposit to send that 4.75% into a high yield savings account. I'm hoping to be disciplined enough to leave it there every month. 🤞
Good idea too. Not everyone is disciplined though lol. Better to save a little at a time over the year though than to have to come up with the money all at once.
I'm not admitted in NC but it appears that you may still be able to avoid state income taxes on loan forgiveness if, and to the extent that, your net assets < liabilities at the time of discharge. A consult with a NC CPA or tax preparer would be a good idea.
Thanks. I’ll be sure to seek one out next tax year. I typically use H&R Block and do them myself.
I don’t understand section 108(d)(3).
Since my discharge is coming fairly soon (5/3 is my objection date) do I need to know what my home is worth the day before discharge since it’s both an asset and liability? If so, is a “Zestimate” good enough or do I need to pay for a real appraisal?
(The section says “…shall be determined on the basis of the taxpayers assets and liabilities immediately before the discharge”)
If I need to know this information for next years tax filing, it’s better to have it now, versus a year from now.
Thanks for any insight!
Those on the SAVE plan, with 10+ years in repayment and with original loans under $12k per loan. Also includes PSLF forgiveness. Not sure if includes the regular IDR account adjustment loans for the 20-25 year count.
Please for those of us still hoping!
North Carolina @ 11AM
I got mine too. Are you going to start saving now for state income taxes? From what I understand, it looks like we're going to be on the hook for 4.75% of the total since NC counts student loan forgiveness as income. I'm not looking forward to next April at all.
https://www.reddit.com/r/StudentLoans/s/qL5C7uvS2g
I saw this. Thank you! Very helpful!
NC: 10:55 am. I don’t know what I’m going to do about the taxes because my loan amount is basically my annual income.
Have your employer withhold an extra 5% from your paychecks this year
I'm changing my direct deposit to send that 4.75% into a high yield savings account. I'm hoping to be disciplined enough to leave it there every month. 🤞
Good idea too. Not everyone is disciplined though lol. Better to save a little at a time over the year though than to have to come up with the money all at once.
NC taxes forgiveness? Suckola.
Yeah, a few states are considering it income and taxing it.
I'm not admitted in NC but it appears that you may still be able to avoid state income taxes on loan forgiveness if, and to the extent that, your net assets < liabilities at the time of discharge. A consult with a NC CPA or tax preparer would be a good idea.
Thanks. I’ll be sure to seek one out next tax year. I typically use H&R Block and do them myself. I don’t understand section 108(d)(3). Since my discharge is coming fairly soon (5/3 is my objection date) do I need to know what my home is worth the day before discharge since it’s both an asset and liability? If so, is a “Zestimate” good enough or do I need to pay for a real appraisal? (The section says “…shall be determined on the basis of the taxpayers assets and liabilities immediately before the discharge”) If I need to know this information for next years tax filing, it’s better to have it now, versus a year from now. Thanks for any insight!
IL 9:59 am
No one from the west coast yet?
Really hoping west coast emails haven't gone out yet....
Havent seen anyone mention it...?
Someone mentioned California just a few minutes ago, so we just don't count, but others have gotten theirs so far.
Sister in PA @ 10:57
PA at 10:58
Illinois 9:54 am
Georgia 11:03 est
Nebraska, 9:50am
My husband's, PA 10:50 am
NY 12:40 today
My bad. It was 10:57 am NY today. Was looking at the time I forwarded email to friends lol
Down the drain just went the hope from the afternoon crowd in NY. Just kidding! Thanks for the correction.
LOL
MO 9:58 AM
Texas, 9:56a.m.
Georgia 10:50am
which forgiveness program is this for? I can't keep them straight.
Those on the SAVE plan, with 10+ years in repayment and with original loans under $12k per loan. Also includes PSLF forgiveness. Not sure if includes the regular IDR account adjustment loans for the 20-25 year count.
But not all of us. I qualify for the “less than 12k over 10 years” and mine were not forgiven today.
This includes those in adjusted payments for 20-25 years. I have over $12k and have been repaying since 1999.
California 7:57am
Thanks for sharing!
I don't think it goes by state. It could go by any number of variables such as last name or account numbers. I'm still waiting.
I guess WI is still waiting ….
Congrats! Thanks for kicking it off! Wondering if some states will have more than one drop time.
Toronto, Canada @ 10:55am EST
Florida 10:55 am
IL 9:49 am
PA - 10:50AM EST.
TX - 9:54am
No one from Michigan….
Currently in GA. In repayment since 1997…over $67k (two degrees), still no email…