If you’re one of the millions of Americans expecting student loan forgiveness, you won’t owe federal taxes. But that doesn’t mean you’re off the hook at the state level.
Indiana is the latest to confirm forgiveness will trigger state income taxes, and some borrowers may owe county levies on top of state income tax.
“As this law is clearly defined, there is no need for additional administrative rules,” a spokesperson with Indiana’s Department of Revenue said. “Any legislative change must come from the general assembly.”