Those seeking cancellation of as much as $20,000 in loans can fill out a form using the student aid website until the end of 2023. The current federal debt forgiveness program is offering $10,000 to $20,000 of forgiveness for student loans.
Employees considered transferees, assignees, etc., had taxable mobility expenses added to their 2020 or 2021 W-2s. In order for your employees to be eligible for the program, they must have federal student loans and earn less than $125,000 annually (or $250,000 per household) in tax years 2020 or 2021. Employees who meet that criteria are eligible to get up to $10,000 in debt cancellation or as much as $20,000 for eligible borrowers who were also Pell Grant recipients.
Companies need to decide if they will address this loss in their mobility policies. If companies do cover the loss, the decision to gross-up or not will need to be made.
Need assistance working through your mobility policy? Working with our Tax Services and Mobility team will provide you with the tools to ensure you have peace of mind. Contact us today.
Student-loan Forgiveness Site Opens