Mississippi First State to Declare It Will Tax Forgiven Student Loan Debt

Mississippi intends to tax as income those residents who have their student loan debt forgiven, becoming the first state to declare that it plans to make such a move, Bloomberg has reported.

Although the student loan forgiveness plan is exempt from federal tax, an analysis by the Tax Foundation says it may still be subject to some individual state taxes.

In contrast, New York, Virginia, and Pennsylvania have already introduced tax exemptions for residents who qualify for the debt forgiveness, according to Bloomberg.

However, other states — including Arkansas and Wisconsin — are also considering taxing forgiven student loan debt.

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