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.
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!!!"