How many of those people who got debt relief are going to be unable to pay for the extra taxes from the imaginary 10k of income they received? It's not like their bank accounts or income changed at all, what the fuck.
take the forgiveness. state revenue auditing is even less funded than federal, which is a joke. they tend to go after people who can and will pay, not lots of little broke people.
if it were me, I would find a way to not even declare it and make them figure it out and come after me, if they even can. if they manage to figure it out and come after me, it's gonna be much less than the amount forgiven and when people owe more tax than they have on hand, there are all manner of favorable ways to enter repayment and negotiate it down.
also, most red states have token state income tax.
long story short, plan to take it and ask around about state level avoidance / mitigation strategies.
Exactly my thoughts, effectively making this "relief" a short term punishment to anyone who takes it who isn't having the entirety of their debt wiped out.
Makes that chud post from yesterday saying they weren't going to apply for it an actual thing struggling people may have to do in NC or other chud states that decide to follow suit
How many of those people who got debt relief are going to be unable to pay for the extra taxes from the imaginary 10k of income they received? It's not like their bank accounts or income changed at all, what the fuck.
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Officially, "bad debt" is taxed like income in order to prevent people from dodging taxes by re-categorizing income as loans you failed to pay back.
In practice, this ends up being just another means of doing a regressive "poor tax" aimed at folks least capable of protesting it.
That's me lol, in NC
I'm looking at 20k of relief potentially and there's zero chance I could afford the taxes on that
So I guess I won't be taking it now? Unsure what to do.
take the forgiveness. state revenue auditing is even less funded than federal, which is a joke. they tend to go after people who can and will pay, not lots of little broke people.
if it were me, I would find a way to not even declare it and make them figure it out and come after me, if they even can. if they manage to figure it out and come after me, it's gonna be much less than the amount forgiven and when people owe more tax than they have on hand, there are all manner of favorable ways to enter repayment and negotiate it down.
also, most red states have token state income tax.
long story short, plan to take it and ask around about state level avoidance / mitigation strategies.
Guarantee they'll use this to come out with "see? They LOVE their debt and HATE forgiveness!!!"
Exactly my thoughts, effectively making this "relief" a short term punishment to anyone who takes it who isn't having the entirety of their debt wiped out.
Makes that chud post from yesterday saying they weren't going to apply for it an actual thing struggling people may have to do in NC or other chud states that decide to follow suit