/tax-bomb-calc

Tax-bomb calculator

Federal forgiveness exclusion under IRC §108(f)(5) expires Dec 31, 2025. For tax years 2026+, forgiven amounts may be taxable as ordinary income at the federal level — and at the state level depending on conformity.

Your inputs

Forgiveness yearYYYYForgiven amountUSDProjected AGI in forgiveness yearUSDState of residence

Estimated tax-bomb · year 2046

$22,560

≈ $94/mo set aside from today

Illustrative estimate — flat 24% federal rate (not your actual bracket), AGI not yet applied. Not a tax calculation; confirm with a tax professional.

Federal

$22,560

24% ordinary income

State · CA

Conforms · excluded

Forgiven $94,000Tax $22,560 (24%)

Illustrative estimate only. Federal liability uses a flat 24% rate, not your actual bracket, and state liability is flagged only for the states currently known to decouple (MS, NC, WI, AR, IN). State conformity varies and changes — confirm with the IRS and your state Department of Revenue, or a tax professional, before relying on any figure.

IRC §108(f)(5) · state DOR conformity· Last verified 2026-04-22· IRS.gov · state DORs