@c-laren-sch - as stated, there is no federal tax on cancelled student debt through 2025. For States, 44 states are not going to tax the cancelled student debt relief either. There are 6 states that are 'in play' to tax any cancelled debt. I live in NC and the state legislature is adament they will not change the law, meaning student debt relief is taxable on the NC tax return (even though there is no federal tax)
this article explains where the 6 states "in play" stand
https://taxfoundation.org/student-loan-debt-cancelation-tax-treatment/
note that as of Nov. 8, there hasn't been any relief, pending lawsuits that has paused the debt cancellation, even though payments begin on Jan 1.
