Are loan amounts forgiven under PSLF considered taxable by the IRS?
No. According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. For more information, you should check with the IRS or your tax advisor. (Department of Education. March 14, 2012).
Are loan amounts forgiven under IBR considered taxable by the IRS?
You may have to pay taxes on any loan amount that is forgiven after 25 years. (Department of Education)
Are loan amounts forgiven under PAYE considered taxable by the IRS?
You may have to pay taxes on any loan amount that is forgiven after 20 years. (Department of Education)
UPDATE: President Obama’s 2015 Budget Proposal would: “Provide tax relief to student loan borrowers by excluding student loan forgiveness from taxation for borrowers who have made student loan payments for many years under an income-related repayment plan.” (White House Press Release. March 4, 2014)