Taxes & President Announces Student Loan Forgiveness Plan [Form 1099-C] Cancellation of Student Debt скачать в хорошем качестве

Taxes & President Announces Student Loan Forgiveness Plan [Form 1099-C] Cancellation of Student Debt

Student loan forgiveness and related taxation for forgiveness of debt, as normally reported on 1099-C (cancellation of debt). Biden announces student loan forgiveness plan. However, ahead of that, the IRS announced how student loans that are forgiven will be handled for tax purposes. JJ THE CPA's Seminars, Books, Website and Social Media Links https://linktr.ee/jjthecpa JJ THE CPA's Website: https://www.jjthecpa.com/ As reported by CNN: President Biden formally announced a federal student loan relief plan for some borrowers on 8/24/22 , saying in White House remarks that the action is aimed at helping "families who need it the most." Borrowers who hold loans with the Department of Education and make less than $125,000 a year are eligible for up to $20,000 in student loan forgiveness if they obtained Pell Grants for college. Individuals who make less than $125,000 a year but did not receive Pell Grants are eligible for $10,000 in loan forgiveness. The Biden administration also announced undergraduate federal loans can cap their payment at 5% of their monthly income. Additionally, the White House is extending the pandemic-era pause on student loan repayments one final time until Dec. 31. TAX & CPE SEMINARS BY JJ THE CPA https://www.jjthecpacpe.com/ DIRECT SIGN UP TO TAX & CPE SEMINARS https://calendly.com/jjthecpa INSTANT ERTC SEMINAR BY JJ THE CPA (A TO Z ON HOW TO GET THE ERTC) https://www.jjthecpa.com/ertcseminars... Taxation details Tax Adviser by Paul Bonner Lenders and servicers of most student loans should not file Form 1099-C, Cancellation of Debt, for loans discharged in 2021 through 2025, since borrowers do not have to include these forgiven amounts as income for tax purposes. The guidance in Notice 2022-1 pertains to a provision of the American Rescue Plan Act (ARPA), P.L. 117-2, passed in March 2021. ARPA added a special rule in Sec. 108(f)(5) providing that taxpayers' gross income does not include any amount discharged after Dec. 31, 2020, and before Jan. 1, 2026 for certain loans provided expressly for postsecondary educational expenses, whether through an educational institution or directly to the borrower. IRS NOTICE 2022-1 https://www.irs.gov/pub/irs-drop/n-22... The covered loans are those made, insured, or guaranteed by the United States or its instrumentalities or agencies; a state, territory, or possession of the United States or the District of Columbia, or any of their political subdivisions; or made by an eligible educational institution, as defined in Sec. 25A. Also covered by the provision are certain student loans made by educational organizations and private lenders. The notice advises lenders and servicers of these loans that they are not required to, and should not, file information returns or payee statements (i.e., Form 1099-C) reporting an applicable discharge of student debt to the IRS or to the borrower, which could cause the IRS to erroneously issue a notice of underreported income and confuse the borrower. Per WSJ: Biden’s Student Loan Forgiveness Plan to Cancel Up to $20,000 in Debt for Millions Per NYT: What You Need to Know About Biden’s Student Loan Forgiveness Plan President Biden’s executive order means the student loan balances of millions of people could fall by as much as $20,000. #studentloandebt #studentloanforgiveness #studentdebt #studentloans #jjthecpa #cpa #tax #taxes #irs COMMENTS ARE NOT REVIEWED. PLEASE DO NOT EXPECT AN ANSWER TO YOUR QUESTIONS. PLEASE REVIEW FULL DISCLAIMER www.jjthecpahelp.com/youtubedisclaimer I AM A CPA, BUT I AM NOT YOUR CPA. YOU MUST CONSULT WITH YOUR OWN TAX, FINANCIAL & LEGAL ADVISER. ANY INFORMATION ON THIS CHANNEL IS INTENDED FOR INFORMATIONAL PURPOSES AND FOR GENERAL GUIDANCE ONLY AND MUST NEVER BE CONSIDERED A SUBSTITUTE FOR ADVICE PROVIDED BY YOUR ADVISERS. THIS CHANNEL DOES NO CONSTITUTE ADVICE