[Sgt_Schultze]

In February 2022, the folks whose debt is forgiven will receive a 1099-C from the bank holding the debt. It will indicate the lump sum value of the total amount forgiven as taxable income for the current tax year. They will owe Federal, Social Security, Medicare, and probable State taxes on this amount, on their April 15 returns.

The squeals will be music!

[sheana]

If they’re unable to make a monthly payment on the debt how do they expect them to come up with these huge lump sums all at once? Nevermind.