Congratulations! Your student debt is forgiven. Here's what the IRS will say about your good fortune.

Contributing sentiments towards policy:

49% : Certain states could tax the amount of canceled debt when they assess their own income tax, experts sayPresident Joe Biden announced earlier August that individuals earning less than $125,000 a year would have $10,000 in federal student loan repayments forgiven, but that would rise to $20,000 if they received Pell Grants in college.
44% : The Arkansas Department of Finance and Administration is reviewing how state tax laws may apply for student debt cancelled through executive order and the determination should come in a matter of days, said a spokesperson for Arkansas Governor Asa Hutchinson.
43% : But that's federal income taxes.
42% : "In some states, you may need to evaluate whether you qualify for any other type of exclusion such as an insolvency exclusion in addition to reporting the cancellation as taxable income."'Still, Brooks noted, the state tax implications of canceled student debt is "not going to lead to financial catastrophe for most borrowers, especially compared with the financial benefits of the loan cancellations.

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