No tax on student loans in New York state
New York state will not tax student loans covered by President Joe Biden's forgiveness plan.
The Tax Foundation, a Washington-based think tank, listed New York as one of 13 states that could potentially treat the forgiven loans as income. But the state Tax Department says it does not intend to impose the income tax. That matches up with federal tax policy.
State Senate Deputy Majority Leader Michael Gianaris said he'll be introducing a bill to set that policy into state law.
"The last thing we want to do is eat into peoples' benefit that require them to dip into their pockets to actually pay," Gianaris said.
The Biden plan would cancel up to $10,000 in outstanding student loans per person, or up to $20,000 if the borrower received Pell grants. Borrowers can begin applying for debt relief in October.