By Joy Taylor
From Kiplinger’s Personal Finance
Question: Is forgiven student debt taxable?
Answer: No, at least through 2025. As a general rule, debt cancelation income is taxable. But a 2021 law provides that most student loans forgiven from 2021 through 2025 are tax-free.
President Biden’s plan to forgive up to $10,000 in student loans ($20,000 for Pell Grant recipients) for single filers with incomes below $125,000 ($250,000 for joint filers) is tax-free. Watch out for state taxes. Though many states follow federal law, some don’t.
Question: What tax breaks for energy-efficient home upgrades are included in the Inflation Reduction Act?
Answer: The break for adding solar panels and the like to your home is extended through 2034. Individuals get a tax credit for installing an alternative energy system that relies on a renewable energy source, such as solar, wind, geothermal or fuel cell technology. The cost of wind turbines, solar panels, solar electric equipment, and solar-power water heaters is eligible for the credit, whether they are installed in a primary residence or vacation home. Starting in 2023, the credit is expanded to cover battery storage technology that is installed in your residence….