Student loan forgiveness became federally taxable again on January 1. A $148,000 IDR discharge on a $58,000 income carries about $33,400 in tax — unless the insolvency exclusion applies, which for most borrowers it does.

Student loan forgiveness became federally taxable again on January 1. A $148,000 IDR discharge on a $58,000 income carries about $33,400 in tax — unless the insolvency exclusion applies, which for most borrowers it does.