Employee Student Loan Forgiveness May Be Taxed as Income in Certain States
If you’ve been following the news lately, you likely heard about the promise of $10,000 to $20,000 of your employees’ student debt being forgiven.
Yet, many are unaware that though the student loan forgiveness won’t be taxed as income on the federal level, it may be taxed at the state level in certain states.
To date, Indiana, Mississippi, and North Carolina have all announced they will tax the loan forgiveness. Other states that may follow suit include Arkansas, California, Minnesota, and Wisconsin. As many as 13 states may tax student loan forgiveness.
