XPost: alt.fan.rush-limbaugh, alt.politics.democrats, talk.politics.guns
XPost: alt.fan.states.mississippi
In article <XkUVJ.96144$
Wdl5.2830@fx44.iad>
governor.swill@gmail.com wrote:
Stick that up your ass.
Mississippi is planning to tax residents' forgiven student loan
debt, per Bloomberg.
Debt cancellations are usually considered as taxable income
unless an exemption is made.
More states could subject forgiven student loan debt to income
tax.
Mississippi is planning to tax residents' forgiven student loan
debt as income, its Department of Revenue confirmed to Bloomberg
on Tuesday.
The Biden administration's student loan forgiveness plan is
exempt from federal tax but may still be subject to some
individual state taxes, according to an analysis by the Tax
Foundation.
The state's decision is in contrast to those such as New York,
Virginia, and Pennsylvania, which have introduced tax exemptions
for residents who qualify for the debt forgiveness, per
Bloomberg. Debt cancellations are usually considered as taxable
income unless exemptions are made.
Mississippi's Department of Finance & Administration did not
immediately respond to Insider's request for comment on the
decision made outside of normal working hours.
A provision in the final text of the American Rescue Plan Act
ensured that forgiven student loans between 2015 and 2021 would
not be included as taxable income. But more than 13 states,
including Mississippi, are not bound to fully uphold the clause
when it comes to state tax, per the Tax Foundation.
More states, including Arkansas and Wisconsin, could also tax
forgiven student loan debt.
Representatives for Arkansas' and Wisconsin's revenue
departments did not immediately respond to Insider's request for
comment.
Arkansas' Department of Finance and Administration told
Bloomberg it was "reviewing whether debt forgiveness in this
scenario, via executive order, is subject to state income tax in
Arkansas."
The department added it would decide on student loan tax in the
next few days.
The Wisconsin Department of Revenue told Bloomberg it would
address the subject in its upcoming biennial budget.
Read the original article on Business Insider
Comments:
Chester P
17 hours ago
I mean, that's the normal thing that happens when debt is
forgiven. Borrowed money isn't income because you have to pay it
back. If you no longer have to pay it back, it is effectively
income. I've worked in lending (not student lending, but
consumer lending) for almost 25 years, and state and federal tax
agencies have always considered forgiven debt to be income.
https://news.yahoo.com/mississippi-first-state-confirm-tax-
130511318.html
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