2 Red States Are Taxing Student Debt Relief — But Didn’t Tax PPP Forgiveness

Two Republican-run states have announced that they’re planning to tax relief that borrowers get from Biden’s student debt cancellation plan — even though they didn’t tax the billions of dollars of PPP loan forgiveness given to businesses and corporations.

that their decisions on the exemption are currently pending legislative or executive review.

Though the forgiveness will be exempted from federal taxes, at least 13 states in total aren’t required to uphold the federal exemption, though Hawaii, Idaho, Kentucky, New York, Pennsylvania and VirginiaThe long term savings for borrowers will still likely vastly outweigh their tax bills on the relief.

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