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Borrowers whose student loans were forgiven in 2023 may owe state taxes


The American Rescue plan exempted student loan forgiveness from taxes through 2025, but not all states followed suit.

President Biden has forgiven more than$136 billion in student loan debt for over 3.7 million borrowers. Some states follow federal tax law, but others treat forgiven loans as taxable income. "Taxpayers must check the specific regulations of their state to prevent unreported income," Dennis said.

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