While student loan forgiveness is federally tax-free, borrowers may owe levies at the state level — here are the five states where borrowers may see a bill
"No one wants to be the state taxing student loan forgiveness," said Ethan Miller, a certified financial planner and founder of Planning for Progress, specializing in student loans in the Washington, D.C., area.
He said the latest updates may be helpful since borrowers aren't receiving extra income to cover potential state liability, he said.Of course, with policies in flux, there's still time for changes. Currently, here's which states may tax student loan forgiveness.Although the Arkansas Department of Finance and Administration hasn't issued a formal decision, a determination may arrive in the coming days, a spokesperson told CNBC.
However, the state doesn't conform to the federal code"in any significant way," according to the Tax Foundation, making forgiven student debt likely to be taxable without state action.While the Massachusetts Department of Revenue hasn't made a final determination, state Rep. Steve Owens, a Democrat, on Wednesday said
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
These 5 states could tax student loan forgivenessStudent loan borrowers in Mississippi will have to pay taxes on loan forgiveness, and four other states could follow suit.
Read more »
'Hopefully it works': Student loan borrowers worry about their futures while navigating loan forgivenessThe Biden administration is forgiving student loan debt for millions of Americans, but some borrowers have a lot of questions.
Read more »
Ross: Donald Trump Jr. aligns with China on education policyThe latest critic of student loan forgiveness is Donald Trump Jr., who called it “insane and disgusting' that “thousands of Harvard Law grads need hard-working blue-collar workers to help them pay off their loans for them.”
Read more »
Why Student Debt Relief Is FeministThe Great Recession, student loans, and the lies that saddled borrowers.
Read more »
Student Loan Forgiveness’ Unintentional Consequence: This DC Woman May Have Found a Sugar DaddyA tale of a Twitter poll that reads like a modern DC love story.
Read more »