KXLY
March 3, 2021 9:54 AM
Kimberly Palmer
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Americans struggling with debt might get some additional unpleasant tax surprises this year: From needing to pay taxes on forgiven debt to seeing reduced deductions as a result of loans that are in forbearance, some taxpayers are poised to owe more than they might realize, adding to an already confusing tax year. Some taxpayers are also at risk of losing their refund to debt collectors.
It’s no wonder that according to NerdWallet’s 2021 Tax Report, one-third of filers feel stressed or anxious about owing money this year.
The pandemic led to upheaval in many people’s lives that can directly or indirectly affect their taxes. However, there are steps you can take to reduce the impact and keep tax season from dealing another devastating blow to your finances.