North Carolina Becomes Second State To Tax Student-Loan Forgiveness
The Biden administration’s student-loan forgiveness will be considered taxable income in North Carolina, the state’s Department of Revenue announced on Wednesday. “As part of the American Rescue Plan, Congress enacted Section 108(f)(5) of the Internal Revenue Code to expand the types of student loan forgiveness that would not be treated as taxable income for purposes of federal income tax,” North Carolina’s Department of Revenue said in a statement. “The North Carolina General Assembly did not adopt Section 108(f)(5) of the IRC for purposes of the state income tax. Therefore, student loan forgiveness excluded pursuant to IRC 108(f)(5) is currently considered taxable income in