Description

This is a course in our ongoing series of the One Big Beautiful Act passed by congress in July 2025.

The One Big Beautiful Bill Act (OBBB) introduced several changes to student loans and some tax provisions, though it’s important to note the landscape for student loan forgiveness and related tax treatment has been in flux.

Loan Discharge and Taxability

Forgiven student loan debt will not be federally tax-free after December 31, 2025, unless Congress takes further action to extend the exclusion. However, the OBBB permanently extends the exclusion from taxable income for student loans discharged due to death or total and permanent disability, provided the taxpayer includes their Social Security Number on their return.

Personal tax credit changes

Evaluation of personal tax credits. The bill addresses numerous tax credits such as the Child Tax Credit (CTC); Other Dependent Credit, Adoption Credit; Employer Child Care Tax Credit; Employer Credit for Paid Family and Medical Leave; Education Credits (AOC/LLC)Qualified Tuition Programs (529 plans).

Each of these tax credits have various concepts to their implementation and professional should ensure they understand all components and consult with their tax advisors.

This course focuses on personal tax credits and the student loan discharge program.