Student Loan Forgiveness North Carolina says it will tax Biden's 

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confirm that student debt relief will count as taxable income.

The state Department of Revenue confirmed that student loan waivers are taxable income in North Carolina. PLASES SHERE

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The Biden administration's student loan waiver scheme has been exempt from federal tax.

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Liability Assistance is triggering individual state taxes in North Carolina and Mississippi.

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Student loan waivers in North Carolina will be considered taxable income, the state Department of Revenue said On Wednesday.

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Although the Biden administration's student loan waiver scheme is exempt from federal tax, debt relief is still triggering some individual state taxes.

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In North Carolina, student debt relief is taxable because the state has not fully adopted a specific section of the Internal Revenue Code. 

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Congress used the provision – Section 108(f)(5) – to exempt student loans waived between 2015 and 2021 from tax as part of the US Rescue Planning Act. 

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"The North Carolina General Assembly did not adopt Section 108(f)(5) of the IRC for the purposes of state income tax," the department said in a press release. 

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Therefore, student loan waivers excluded according to IRC 108(f)(5) are currently considered taxable income in North Carolina. 

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North Carolina's announcement makes it the second state to confirm that student debt relief will count as taxable income.

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