President Joe Biden's student loan forgiveness plan could lift crushing debt burdens from millions of borrowers, but the tax man may demand a cut of the relief in some states, the Newsmax website reports today (September 5, 2022).
That's because some states tax forgiven debt as income,which means borrowers who are still paying down student loans could owe taxes on as much as $10,000 or even $20,000 that was taken off their bill.
In Mississippi, Minnesota, Wisconsin, Arkansas, and North Carolina, forgiven student loans will be subject to state income taxes.
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