By now you have likely seen the latest information coming from President Joe Biden himself. Yes, $10,000 of Federal student loans will be forgiven if you qualify. The rules and details are yet to be released and as soon as we have them, I will publish here, via my newsletter and also on our YouTube channel.
For now, it appears that there will be paperwork to complete at the Department of Education website. We are unclear whether tax returns will need to be presented to show your income qualifications and whether those will be 2021 or 2022 income tax returns. I do see some income tax strategies coming into play here so stay tuned on that.
We DO know that the stay on making your student loan payments has been extended through December 31, 2022. We DO know that Federal loans for both undergraduate and post graduate studies will be covered. We DO know that current students loans will be covered.
What this latest update shows us is that tax planning and tax strategy, remains extremely important today as always and that having your taxes prepared and filed once a year will not save you money. Working with your tax advisor all your long, being in the loop as tax related news unfolds, is critical to making smart money choices.
For those of you wanting to be PROACTIVE in your taxes, join THOMAS to learn about business tax deductions Travel/Home Office/Meals/Auto and Supplies.
And for additional resources, head over to our website at www.wendybarlin.com