These states could tax Biden's student debt relief
People in line to benefit from President Biden’s plan to cancel up to $20,000 in student loans could be taxed on the one-time relief depending on where they live.
Mississippi, North Carolina and Indiana plan to levy state taxes on federal student loan forgiveness, while decisions in Wisconsin, West Virginia, Minnesota, California and Arkansas were in flux as of Friday, according to the state’s respective tax agencies.
Most other states are taking their cue from the federal government. Through January 2026, the Internal Revenue Service will not count discharged student debt as taxable income. The temporary reprieve stems from the $1.9 trillion stimulus package Biden signed into law last year.
In the days following Biden’s debt relief announcement, at least 10 states — including Virginia, New York and Pennsylvania — assured residents with education loans that discharged debt will not be taxed.
https://www.washingtonpost.com/education/2022/09/10/state-taxes-student-loan-forgiveness/