GettyThe Internal Revenue Service (IRS) has issued guidance for some taxpayers who took out federal or private student loans to finance attendance at a nonprofit or for-profit school. The guidance offers relief for students whose loans have been discharged by the Department of Education and who meet specific criteria. That means that the taxpayer should not report the amount of the discharged loan on his or her federal income tax return. The break applies to students who:Participated in Closed School discharge process. As with previous guidance, the Treasury Department and the IRS believe that federal and private student loan borrowers may be able to exclude discharged loans under the insolvency exclusion under section 108(a)(1)(B).

Source: Forbes January 16, 2020 02:26 UTC