Taxes On Forgiven Student Loans

 

If schools and foundations forgive your loans, those loans might not be taxable. Changes to the exclusion rules mean loans made by some schools aren’t taxed.

For the exclusion rules to apply:

  • An educational institution must have made the loan.
  • The loan must have been part of a program that encourages students to serve in occupations or areas with unmet needs.
  • Your job must fall under one of these:
    • Governmental unit
    • Tax-exempt Section 501(c)(3) organization

To learn more, see these at www.irs.gov:

  • Publication 525: Taxable and Nontaxable Income
  • Publication 970: Tax Benefits for Education

Related Topics

Related Resources

The Military Spouse Residency Relief Act (MSRRA) – Making Tax Time Easier for Military Families

MSRRA streamlines the tax return process by allowing both the service member and the spouse to keep the same state of residency. Learn more at H&R Block.

Tips for Filing Taxes as a Student

Curious about how to file taxes as a student? The experts at H&R Block are providing tax tips for students so you’ll know exactly what you’re doing.

Using Your Tax Refund for Debt Management

Are you having trouble with debt management? Your tax refund can help you control debt, save for emergencies and plan for your future. Learn how at H&R Block.

Last-Minute Tips to File Before April 18

If you still haven't done your taxes, don't panic. This video from H&R Block provides 5 tips to help you through the filing process before the tax deadline.