Residents in These 13 States Could Pay Taxes on Their Student Loan Relief
The Hill | 8/26/2022Residents of 13 states who receive debt forgiveness from the federal government for their student loans may need to pay some state taxes on their forgiven amount, according to an analysis by the think tank Tax Foundation.
Jared Walczak, the vice president of state projects for the Center for State Tax Policy at the think tank, said in a blog post on Thursday that loan forgiveness is generally considered to be equivalent to income and is therefore taxable.
Walczak said that the American Rescue Plan, the $1.9 trillion package that President Biden signed into law in March 2021, exempts the forgiveness of student loan debt from 2021 to 2025 from federal income taxes.
States that follow the federal government’s lead will also exclude debt forgiveness, but not all states do.
Arkansas, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, New York, Pennsylvania, South Carolina, Virginia, West Virginia, and Wisconsin.
“Wa-a-a-ah! That’s not FAIR! Everyone in the other 57 states and U.S. territories and dependencies should pay our tax bills!”
“I mean it! I’m thinking of skipping work otherwise.”
It’s not like those states can print their own money you know.
But they can still take it at gunpoint.
Can’t come in..thumb injury from sucking on it..sorry..