Student loan forgiveness - state taxable?

[Slater]

This probably won't sit well with a lot of folks:

"Student loan forgiveness is taxable income in North Carolina, the state's Department of Revenue confirmed.

The Biden administration's student loan forgiveness plan is exempt from federal tax.

The debt relief is triggering individual state taxes in North Carolina and Mississippi"


https://www.yahoo.com/news/north-carolina-says-tax-bidens-105925738.html

[FromMyColdDeadHand]

Just take out a student loan to pay the tax...

[utahjeepr]

Let's see, usually if a loan is written off you get a 1099 and have to pay taxes on it.

So not only do these deadbeats get free college but they get to skip out on even paying a pittance in taxes to boot?

I got a call into the White House. I'm looking at buying a new truck and I wanna get in on Joe's financing plan. ;)

[FromMyColdDeadHand]

Actually, $10k loan forgiveness is like getting $15 in income, since you actually clear about $10k out of $15k of income earned…