(WFRV) – With President Joe Biden’s announcement of canceling student debt for millions, will Wisconsin residents have to pay taxes on the amount forgiven?
President Joe Biden announced that those who went to college on Pell Grants will have $20,000 forgiven. Those do didn’t receive that grant will see $10,000 in forgiveness.
But in Wisconsin will that debt forgiveness be taxable? Local 5 reached out to the Department of Revenue to find out.
A spokesperson with the Wisconsin Department of Revenue told Local 5 the following:
Excluding debt forgiveness from being taxed, in this instance, requires a statutory change. However, at this time, this change has yet to be taken up and passed by our state legislature.Wisconsin Department of Revenue
On the DOR’s website, there is a page (from 2010) that echoes a similar statement regarding federal student loan forgiveness.
The Department of Education estimates that, among borrowers who are eligible for relief, 21% are 25 years and under and 44% are aged 26-39. More than a third are older than 40, including 5% who are senior citizens.
In the coming weeks, Biden said the Education Department will lay out a “short and simple form” to apply for student debt relief.