u/DrAudiology1

I received the golden email this year, 25 years after beginning to pay off my loans. I'm taking the forgiveness with or without tax issues, and I'm happy to claim insolvency if needed. But how will we know whether or not we'll get a tax bomb? The email said specifically that you *might* be responsible for state taxes and says nothing about federal. My state only charges the tax if the federal does. Do you receive some type of notification that you need to claim the forgiveness on taxes?

I know they are behind on sending the emails out and it's possible I reached the payment count in 2025 but the way I read the rules, it says when the forgiveness is processed, not when the payment count is reached. But even that is clear as mud.