Can you update on whether the forgiveness from PSLF is taxable when forgiven?  I understand it’s not.

And is forgiveness taxable income from the regular 20 year program?  I understand it is.

Here you go!  Public Service Loan Forgiveness is not taxable as income.  Income-Based Repayment forgiveness (the one that isn’t tied to employment) is taxable under current law.

Statute exempting Public Service Loan Forgiveness and certain Loan Repayment Assistance Programs from taxation:
Internal Revenue Code, Section 108: Income from Discharge of Indebtedness
IRS Revenue Ruling interpreting Section 108(f) to exclude certain loan forgiveness from income.
IRS Information Letter interpreting Section 108(f) to exclude Public Service Loan Forgiveness from taxable income.
United States Department of Treasury Letter interpreting Section 108(f) to exclude Public Service Loan Forgiveness from taxable income.

Hi Heather,

In trying to access these links you previously posted, I am unable to find any content.  Have these been moved, or can you email the pdf’s?

Thanks,
Joh

Hi Joh, all of the links above can be found on our tools page.  We might have not embedded the links above correctly, but you should be able to find them all on our tools page.