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Nevilledog

(50,665 posts)
Fri Sep 2, 2022, 05:22 PM Sep 2022

NC says it will tax Biden's student loan forgiveness, and 3 more states are likely to follow



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North Carolina says Biden's student loan forgiveness will be taxed, and 3 more states are likely to follow suit

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

businessinsider.com
North Carolina says it will tax Biden's student loan forgiveness, and 3 more states are likely to...
Student loan forgiveness is considered taxable income in North Carolina, the state's Department of Revenue said on Wednesday.
6:16 AM · Sep 2, 2022


https://www.businessinsider.com/north-carolina-student-loan-debt-forgiveness-taxed-2022-9

No paywall
https://archive.ph/GzmXk

Student-loan forgiveness will be considered taxable income in North Carolina, the state's Department of Revenue said on Wednesday.

Although the Biden administration's student-loan-forgiveness plan is exempt from federal tax, the debt relief is triggering some individual state taxes.

In North Carolina, student-loan relief is taxable because the state has not fully adopted a specific section of the Internal Revenue Code. Congress used the provision — Section 108(f)(5) — to exempt forgiven student loans from between 2015 and 2021 from federal taxes as part of the American Rescue Plan Act.

The department said in the press release: "The North Carolina General Assembly did not adopt Section 108(f)(5) of the IRC for purposes of the state income tax. Therefore, student loan forgiveness excluded pursuant to IRC 108(f)(5) is currently considered taxable income in North Carolina."

*snip*


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NC says it will tax Biden's student loan forgiveness, and 3 more states are likely to follow (Original Post) Nevilledog Sep 2022 OP
Of course they will durablend Sep 2022 #1
The Cruelty is the point Bettie Sep 2022 #2
Florida: Geechie Sep 2022 #3
Congrats, repubs. You found a way to tax forgiveness. Gidney N Cloyd Sep 2022 #4
I cannot think of another state taxing decision that is anywhere close to being so Atticus Sep 2022 #5
I thought republicans were suppose to be against taxes. Emile Sep 2022 #6
Taxes are for the little people with a big helping of cruelty neverforget Sep 2022 #7
Small Potatoes ProfessorGAC Sep 2022 #8
I agree. I'd pay state tax in a heartbeat on $10,000 underpants Sep 2022 #9
Even Here In Illinois... ProfessorGAC Sep 2022 #12
Well then, how fortunate for NC to have such a great president tavernier Sep 2022 #10
What a way to say a big "FU" to your nurses, teachers, and other professionals who are still alwaysinasnit Sep 2022 #11

Atticus

(15,124 posts)
5. I cannot think of another state taxing decision that is anywhere close to being so
Fri Sep 2, 2022, 05:40 PM
Sep 2022

transparently spiteful and hateful, not to mention childish.

It should be dubbed the "Neener-Neener Biden Is A Poopy-Head!" Act.

ProfessorGAC

(64,413 posts)
8. Small Potatoes
Fri Sep 2, 2022, 05:46 PM
Sep 2022

Sure, it's a silly, hard-hearted & low value move.
But, if someone gets out from under $400 per year of interest & several hundred in principle payments, they're still better off than the were, despite this pettiness.
Those Rs in those states won't have the negative impact they'd like to see.

underpants

(182,271 posts)
9. I agree. I'd pay state tax in a heartbeat on $10,000
Fri Sep 2, 2022, 06:05 PM
Sep 2022

Virginia tax is 2.5% over a certain amount. Off the top of my head. That’s $250. Yeah I’d pay one more loan payment amount and not have interest accruing on money I’m nowhere near paying off

ProfessorGAC

(64,413 posts)
12. Even Here In Illinois...
Fri Sep 2, 2022, 07:25 PM
Sep 2022

...where the state income tax is nearly 5%, it's still a huge benefit. So, this petty nonsense by these governors is not really accomplishing much.

tavernier

(12,322 posts)
10. Well then, how fortunate for NC to have such a great president
Fri Sep 2, 2022, 06:09 PM
Sep 2022

who can help out their kids and contribute to their state income at the same time.

alwaysinasnit

(5,037 posts)
11. What a way to say a big "FU" to your nurses, teachers, and other professionals who are still
Fri Sep 2, 2022, 06:30 PM
Sep 2022

carrying student loans for having been cut a little slack.

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