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US student-loan borrowers
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- 1Student-loan forgiveness could bring surprise tax bills up to $12,000▼US student-loan forgiveness could trigger a surprise tax bill of $6,000 to $12,000, report says
A new report warns that US student-loan forgiveness could leave borrowers facing an unexpected federal tax bill of $6,000 to $12,000, since forgiven debt is generally treated as taxable income. The finding adds a financial complication to ongoing debates over debt relief, with experts urging borrowers to plan ahead for potential liabilities when relief is applied.