PODCAST: State Taxes on the Middle Class, with Rocky Mengle

David Muhlbaum: The pandemic-driven embrace of telecommuting has prompted many to take a good, hard look at where they want to live. But when picking a state, taxes really matter. We talked with senior tax editor Rocky Mengle about the latest iteration of Kiplinger's tax map and how it can help people find a money-saving destination. Also in this episode, student loan forbearance and forgiveness, and how black sheep fit in – or don't – when estate planning. That's all coming up on this week's Your Money's Worth. Stick around.

• Episode Length: 00:27:21
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David Muhlbaum: Welcome to Your Money's Worth. I'm Kiplinger.com senior editor David Muhlbaum, joined by senior editor Sandy Block. Sandy, how are you?

Sandy Block: Doing great today, David.

David Muhlbaum: Good. I know you are eager to talk about student loans this week. They've been in the news of late, specifically, when this debt needs to get repaid and also how much of it needs to get paid.

Sandy Block: More the former than the latter. Less about how much. But we'll get to both.

David Muhlbaum: Okay. So give us the when, then.

Sandy Block: The loan moratorium, which basically means that people who owe student loans don't have to make any payments and interest, does not continue to accrue as long as it's in place. That's been extended until January 31st. This is the second time that ... actually the third time that it's been extended and it's basically due to COVID-19 and the impact on the economy. Now, know that this is only loans that are in the federal student loan program and that's not the only way people finance education. Private loans are a whole nother story, and they're not included in this moratorium.

David Muhlbaum: January 31st. That's when a new administration is going to be in charge. Has Biden said what he plans to do then?

Sandy Block: Well, there's a couple of things. Biden has said that his emergency action plan to save the economy calls for forgiving a minimum of $10,000 in federal student loans. But the prospects for that proposal will depend on the outcome of the Georgia Senate runoff, which will determine which party controls the Senate. Now, Biden could and probably will extend the moratorium for a few more months.

David Muhlbaum: He can just do that on his own.

Sandy Block: He could just do that. Yeah.

David Muhlbaum: While not having to repay I'm sure beats having to repay, this watching and waiting is stressful in its own way. What's your guidance to people who are holding student debt and wondering what the heck is going to happen next?