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Excitement abounds for Biden’s partial student loan forgiveness plan. Lefties think that it isn’t enough because it’s less than promised at the onset (and they are right). Folks to the right of center, despite also planning around the promised forgiveness, are less than happy to reap the benefits.
But you know what may unite everyone against perceived government overreach? More government overreaching!
Because despite Biden explicitly stating that the loan forgiveness is not taxable income, some states still want their cut of the grace.
Some people getting federal student loan relief in Massachusetts might have to pay state taxes on it, according to a recent report.
The White House announced last week it’s canceling up to $20,000 in federal student loan debt for millions of Americans. The Biden administration said that money would not be considered income on federal taxes.
But, according to an analysis from the Tax Foundation, an independent tax policy nonprofit, 13 states might consider it taxable income, including Massachusetts.
“The final count could be significantly smaller if states make legislative changes or administratively determine that the debt forgiveness can be excluded[.]
As a person who loves some good petty and does not live in one of these cash grabbing states, I will be paying attention to all the news feeds and angry tweets. Here is the list of states you should be watch if you want to see a dumpster fire burn in real time.
Fewer things will give me more joy than seeing Mississippians flip from “loan forgiveness hurts real Americans” to “hands off my hard earned loan forgiveness.”
One thing on that joyfulness list though? Bringing back the Choco Taco. If you’re listening Klondike, i’ll do anything.
Massachusetts And 12 Other States Could Tax Federal Student Loan Forgiveness, Report Says [CBS News]
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s. He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at cwilliams@abovethelaw.com and by tweet at @WritesForRent.
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