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Student Loans

Employer student loan repayment assistance, education financing, and Section 127 benefits

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Are Forgiven Student Loans Taxable in 2026? The IDR Tax Bomb, Who Stays Tax-Free, and the Form 982 Escape Hatch

The ARPA exclusion for student loan discharges expired on December 31, 2025, so income-driven repayment forgiveness after 20 or 25 years, closed-school and borrower-defense discharges are federal taxable income again from 2026, while PSLF, teacher-service and death or disability discharges remain tax-free. A $49,000 IDR discharge can add roughly $5,800 to $10,000 in federal tax; the Form 982 insolvency exclusion, early AGI planning and your own payment ledger are the tools that shrink the bill.

mike

student-loansloan-forgivenesstax

Tax Refund Seized? How the Treasury Offset Program Works and How Injured Spouses Get Their Share Back

The Treasury Offset Program lets the Bureau of the Fiscal Service withhold a federal tax refund to pay past-due child support, defaulted federal student and SBA loans, state income tax, and unemployment debts, in that priority order. Creditor agencies must mail a Notice of Intent to Offset at least 60 days before referral, giving you time to pay, sign a repayment agreement, or dispute the debt. When the debt belongs only to your spouse, Form 8379 Injured Spouse Allocation recovers your share of a joint refund in roughly 8 to 14 weeks.

mike

taxtax-filingtax-compliance

Student Loan Wage Garnishment Is Back in 2026: What Employers Must Do When an Order Lands on Your Desk

Federal student loan wage garnishment resumed in 2026 and needs no court order. Employers must withhold up to 15% of disposable earnings while leaving the worker at least $217.50 a week (30 times the federal minimum wage), remit with the case number each pay period, never fire an employee over a single garnishment, and book withholdings to a Garnishments Payable liability account rather than an expense.

mike

student-loanspayrollwithholding
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