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Broad support emerges for wiping away Minnesota tax on student loan relief | FOX 9 KMSP
Posted
August 31, 2022
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August 31, 2022
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2:32Now PlayingKey lawmakers in both political parties and Gov. Tim Walz say they support eliminating state income tax liability on federal student loan forgiveness. Unless lawmakers act, Minnesota will treat debt relief as taxable income because state law is out of step with federal tax changes. On $10,000 of loan forgiveness, state income tax would be at least $535, higher if the person would see reduced credits or deductions because of the increase in taxable income.
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