Student-loan borrowers who get debt relief over the next decade may see their tax bills triple
Source: Business Insider ·
A provision that made student-loan forgiveness tax-free expired in 2025. A new report shows the higher tax bills borrowers are facing.
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A new report shows how student-loan borrowers could face higher tax bills over the next decade.nirat/Getty ImagesA new analysis from Protect Borrowers showed how student-loan borrowers are on track for higher tax bills.It's a result of the expiration of a 2021 provision that made student-loan forgiveness tax-free.The analysis said that tax bills could triple for some borrowers who get debt relief over the next decade.Hoping for student-loan forgiveness? Get ready for a higher tax bill.On Wednesday, a new report from advocacy group Protect Borrowers showed the impact of the "tax bomb" borrowers now face, following the expiration of a 2021 provision that made student-loan forgiveness tax-free.In one example, Protect Borrowers estimated that a married couple with two children earning $60,000 a year would face about $7,200 in additional federal taxes and lost credits if they had about $50,000 in student debt forgiven. Across the scenarios it modeled, the additional cost ranged from about…