Tag: taxpayers

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Financial News General

Student Loan Forgiveness Plan

On Aug. 24, President Biden announced a plan for student loan debt relief. The three-part plan may affect nearly 8 million borrowers.

Part one will allow $20,000 of debt forgiveness for taxpayers who went to college on a Pell Grant or $10,000 without a Pell Grant. This applies only to taxpayers earning below $125,000 a year ($250,000 for married couples). The plan doesn’t specify how earnings are calculated or to which tax year they apply.

Part two is an extension of the pause on student loan repayment until Dec. 31, 2022.

Part three modifies the income-based repayment plan rules. Pell Grant recipients with undergraduate degrees will have their repayments capped at 5% of monthly income.

Contact one of our experts if you have any questions.

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Tax

Tax Withholding Estimator

The April 18, 2021 tax filing season is over. If you’ve filed your return, were you unpleasantly surprised to learn that you owed the IRS money? Or perhaps you thought your refund was too small or too big? If this was the case, your withholding adjustments might be misaligned with your current financial situation. The IRS’s online Tax Withholding Estimator can help taxpayers ensure that they’re having the right amount of tax taken out of their pay.

The IRS recommends checking withholding at least once a year or after a major life change. Access the Tax Withholding Estimator here: https://bit.ly/3rt3ajv or contact us for more information.

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Helpful Articles Tax

Recovering Tax Records After Natural Disasters

With the ongoing wildfires in the western United States, the recent flooding in Tennessee, and Hurricane Ida hitting the Gulf Coast on Sunday, the IRS has issued a tax tip on how victims of natural disasters can rebuild their tax records, financial statements and property records. After a natural disaster, taxpayers may need records to help them prove and recover disaster-related losses. This may be for tax purposes, receiving support from federal assistance programs or for insurance claims.

To get free copies of tax records, the IRS suggests visiting its “Get Transcripts” web page at https://bit.ly/3DjmEew or calling 800-908-9946 to order transcripts.

Read the full tax tip for additional information: https://bit.ly/2XNb0Iy