PR Newswire
Senior legal analyst examines recent developments as Biden's Student Loan Forgiveness Program begins to take shape
NEW YORK , Nov. 4, 2022 /PRNewswire/ --
What: Seven states may tax student loan forgiveness under the Biden Administration program
Why : During his 2020 campaign, President Biden touted promises of student loan forgiveness, and on August 24 , his administration announced that the application for debt relief was coming soon. Although the application was officially released on October 17 , the program itself is currently "on hold," with no debt allowed to be forgiven until federal appeals courts, and potentially the Supreme Court, resolve ongoing challenges to the program. While the American Rescue Plan Act of 2021 (ARPA) ensures that this debt forgiveness is not subject to federal income taxes, some states are still looking to impose state income taxes.
In her new Strategic Perspective entitled " Fate of Student Loan Forgiveness Program Unclear, but State Income Tax Consequences for Borrowers Taking Shape ", Wolters Kluwer Legal & Regulatory U.S. Senior Legal Analyst Anne H. Gibson offers keen insights on the program by analyzing eligibility, legal opposition, how it differs from other cancellation of debt initiatives, and how state income tax will affect it. In addition, Gibson provides a comprehensive map and chart detailing the quickly developing debt cancellation program. The map highlights states that will tax forgiven student debt, states that will not, and states that may do so. The chart breaks down each state's conformity with the IRC definition of income as well as relevant code sections.
Who: Anne H. Gibson, J.D., LL.M.
The student loan forgiveness program is sure to be a boon to many borrowers, but the one-time debt relief could result in an additional tax burden for those living in states that have chosen to tax it. Some opponents of the program have even based their legal challenges on this potential state taxation. - Anne H. Gibson , J.D., LL.M. Senior Legal Analyst
To read the full Strategic Perspective, visit: Fate of Student Loan Forgiveness Program Unclear, but State Income Tax Consequences for Borrowers Taking Shape
Contact: To arrange an interview with Anne H. Gibson, or other legal experts from Wolters Kluwer Legal & Regulatory U.S. on this or any other legal topics, please contact Linda Gharib: lrusmedia@wolterskluwer.com
About Wolters Kluwer Legal & Regulatory U.S.Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk, and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
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MEDIA CONTACT:
Linda Gharib
Director, Brand & Communications
Wolters Kluwer Legal & Regulatory U.S.
Tel: +1 (646) 887-7962
Email: lrusmedia@wolterskluwer.com
SOURCE Wolters Kluwer Legal & Regulatory U.S.