Student loan borrowers in Illinois could face federal, state ‘tax bomb’ in 2026
SPRINGFIELD — For the first time in five years, certain forms of student loan forgiveness will be taxable following a change in federal tax policy this year.
This comes after a provision of the American Rescue Plan Act expired Dec. 31. That measure, signed into law in 2021 by former President Joe Biden, temporarily excluded student loan debt from federal income taxes.
And those tax implications could extend to Illinois state taxes as well unless lawmakers act.
President Donald Trump’s “One Big B...
This comes after a provision of the American Rescue Plan Act expired Dec. 31. That measure, signed into law in 2021 by former President Joe Biden, temporarily excluded student loan debt from federal income taxes.
And those tax implications could extend to Illinois state taxes as well unless lawmakers act.
President Donald Trump’s “One Big B...