Biden recently announced student-debt relief for over 800,000 borrowers on income-driven repayment. The American Rescue Plan said debt relief will not be subject to federal taxes through 2025. While most states adopted the same guidance, some states could tax the latest relief. However, states can choose whether to craft their tax laws in accordance with federal law — and while most states have chosen not to tax debt relief, some have. Along with the varying state laws, the blog said that borrowers who receive debt relief through Public Service Loan Forgiveness are exempt from taxes, along with those who receive relief if their school closed down.

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Persons: Biden, Joe Biden's, — Organizations: American, Plan, Service, Joe Biden's Education Department, of Education, Mississippi North Carolina Indiana Wisconsin, Arkansas Revenue, Tax Foundation, Public Locations: Wall, Silicon, Mississippi North Carolina, Mississippi North Carolina Indiana Wisconsin Arkansas