In a Notice, the IRS has provided lenders and loan servicers guidance on reporting certain discharged student loans. According to Notice 2022-1, lenders and loan servicers shouldn’t file information returns or furnish payee statements to report the discharge of student loans when the discharge is excluded from gross income. Generally, a discharged loan results in income to the borrower. However, a discharged loan amount isn’t included in income if one of the exceptions in the tax code applies. The American Rescue Plan Act, which was enacted in March of 2021, provides that gross income doesn’t include certain student loans discharged after Dec. 31, 2020, and before Jan. 1, 2026. Call or visit our website for more information! www.mjscpa.com/
