When filing for total permanent disability for discharge of federal student loans what is the tax rate I will have to pay on $25,000

[sharilynn67]

As of 12-22-17 Pres. Trump signed new law 115-97 discharged student loans for TPD no longer counted as income.  This is a temporary law until 2025, giving the House and Senate time to work out differences for the Stop Taxing Death and Disabilities Act (S 405 / HR 1659).  

[SweetieJean]

These may be helpful:

https://www.disabilitydischarge.com/faqs

http://www.nytimes.com/2014/03/28/your-money/disabled-borrowers-trade-loan-debt-for-a-tax-bill-from-...

https://www.irs.gov/pub/irs-pdf/p4681.pdf

[sharilynn67]

As of 12-22-17 Pres. Trump signed new law 115-97 discharged student loans for TPD no longer income.