2022 – 08/25 On Aug. 24, President Biden announced a plan for student loan debt relief. The three-part plan may affect nearly 8 million borrowers. Part one will allow $20,000 of debt forgiveness for taxpayers who went to college on a Pell Grant or $10,000 without a Pell Grant. This applies only to taxpayers earning below $125,000 a year ($250,000 for married couples). The plan doesn’t specify how earnings are calculated or to which tax year they apply. Part two is an extension of the pause on student loan repayment until Dec. 31, 2022. Part three modifies the income-based repayment plan rules. Pell Grant recipients with undergraduate degrees will have their repayments capped at 5% of monthly income.
Similar Posts
Premium Tax Payments
2021 – 04/12 The IRS recently suspended a requirement to repay excess advance payments of the 2020 Premium Tax Credit (PTC). The action is a result of the American Rescue Plan Act, which was enacted on March 11. The PTC is a refundable credit that helps eligible individuals and families pay for health care coverage…
IRS Get My Payment Tool
2021 – 04/06 The IRS’s Get My Payment tool provides taxpayers with information about the status of their 2021 Economic Impact Payments. So, what information can you expect to receive when using the tool? Among other things, a payment status will inform you of whether your payment has been processed and whether it will be…
IRS Tax Return Backlog
2022 – 05/23 The Treasury Inspector General for Tax Administration (TIGTA) has issued an audit that evaluates whether the IRS timely and accurately processed individual paper and e-filed tax returns during the 2022 filing season. As of March 4, 2022, the IRS received 54.7 million tax returns and issued $129.2 billion in refunds. The audit…
Worried about an IRS audit? Prepare in advance
2022 – 10/03 IRS audit rates are historically low, according to a recent Government Accountability Office (GAO) report , but that’s little consolation if your return is among those selected to be examined. Plus, the IRS recently received additional funding in the Inflation Reduction Act to improve customer service, upgrade technology and increase audits of…
Contribute to an IRA
2021 – 03/15 There’s still time to reduce your 2020 tax bill if you’re eligible for a deductible traditional IRA. Taxpayers of all ages may be able to claim deductions on their 2020 tax returns for contributions to their IRAs made through April 15, 2021. This is true even if you file your tax return…
Employee Retention Credit: Does Your Business Qualify
2021 – 03/30 Did your business retain employees during the COVID-19 pandemic? If yes, you could enjoy tax relief with the Employee Retention Credit (ERC). Originally introduced with the CARES Act, the ERC is a refundable tax credit against certain employment taxes equal to 50% of qualified wages, up to $10,000 per employee, that an…