Potential Major Tax Changes & the PSLF Waiver

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The wild economy is causing some unique changes to taxes and student loans. How can you take advantage of and benefit from loan forgiveness and proposed changes to the tax laws? 

In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about existing and pending potential major tax changes, including the Public Service Loan Forgiveness (PSLF) Waiver.   

Topics Discussed:

  • PSLF Waiver:
    • Who does it affect? Non-profit workers with federal student loans
    • If you qualify:
      • Make sure your loans are direct federal loans
      • Make sure prior employment is certified/verified
    • Proposed Tax Law Changes:
      • Increase to the tax brackets
      • Increase capital gains tax rates
      • Increase tax loss harvesting benefits or deferring gains on capital assets
      • Increase if business/practice is taxed as S Corp profit
      • Disallow backdoor Roth IRA conversions on after-tax dollars
    • Strategies to Consider:
      • Accelerate income into 2021 while tax brackets are lower
      • Increase incentive to maximize deductions in 2022
      • Accelerate capital gains in 2021 to minimize taxation in 2022
      • Complete backdoor and other Roth IRA conversions before end of 2021

Links:

PSLF Limited Waiver Opportunity Huge Benefit For Physicians

The First Step To Reduce Your Taxes with David Glenn

Chairman Neal Announces Additional Days of Markup of the Build Back Better Act

Analyzing Biden’s New “American Families Plan” Tax Proposal

Contact Finance for Physicians

Finance for Physicians