On the other hand you can, if the American Families Plan (the follow-up to Biden’s earlier American Rescue Plan) do pass as written, it would extend both the Child Tax Credit expansion and Child & Dependent Care Tax Credit expansion/refundability, likely making the old strategy of using MFS far less attractive to student loan borrowers who have young children in future years as well.
Student loan forgiveness has been a policy proposal from many Democratic politicians for years. Yet while loan forgiveness proposals may have seemed extremely unlikely 2 years ago, they now appear to have increased chances of passing given the current political backdrop. With Democrats currently in control of the White House and both houses of Congress, momentum has been building.
In fact, the fresh American Rescue Bundle (ARP) Operate incorporated a clause who would get rid of taxes toward forgiven education loan obligations anywhere between now and you will 2025. Which condition is actually generally considered to was indeed putting a foundation with the odds of some extent off student loan forgiveness, either via legislation or an exec action, for the majority otherwise all of the Government student loan consumers regarding the near upcoming, since it function borrowers create not any longer need to worry about the fresh tax bill that would have education loan forgiveness. (more…)