North Carolina says it will tax Biden’s student loan forgiveness, and 3 more states are likely to follow suit – Business Insider September 2, 2022

I saw this recently on Business Insider – North Carolina says it will tax Biden’s student loan forgiveness, and 3 more states are likely to follow suit – Business Insider September 2, 2022: https://www.businessinsider.com/north-carolina-student-loan-debt-forgiveness-taxed-2022-9/. Longer article. I expect several more states to follow these states as student loan forgiveness becomes taxable.

Beatrice Nolan September 2, 2022

Student-loan forgiveness will be considered taxable income in North Carolina, the state’s Department of Revenue said on Wednesday

Although the Biden administration’s student-loan-forgiveness plan is exempt from federal tax, the debt relief is triggering some individual state taxes.

In North Carolina, student-loan relief is taxable because the state has not fully adopted a specific section of the Internal Revenue Code. Congress used the provision — Section 108(f)(5) — to exempt forgiven student loans from between 2015 and 2021 from federal taxes as part of the American Rescue Plan Act.

The department said in the press release: “The North Carolina General Assembly did not adopt Section 108(f)(5) of the IRC for purposes of the state income tax. Therefore, student loan forgiveness excluded pursuant to IRC 108(f)(5) is currently considered taxable income in North Carolina.”

–snip–

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About Wichita Genealogist

Originally from Gulfport, Mississippi. Live in Wichita, Kansas now. I suffer Bipolar I, ultra-ultra rapid cycling, mixed episodes. Blog on a variety of topics - genealogy, DNA, mental health, among others. Let's collaborateDealspotr.com
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