North Carolina to Tax Student Loan Forgiveness | Eastern North Carolina Now | As reported by WSOC-TV, North Carolina’s Department of Revenue announced this week that the state will consider federal funds received as student loan “forgiveness” as taxable income:

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Brian Balfour.

    As reported by WSOC-TV, North Carolina's Department of Revenue announced this week that the state will consider federal funds received as student loan "forgiveness" as taxable income:

    "The North Carolina Department of Revenue said Wednesday that the state considers student loan forgiveness as taxable income. That means you could be paying hundreds of dollars or have your tax refund reduced by hundreds after you file your taxes."

    Also important to note here that in addition to lowering and flattening rates, the North Carolina General Assembly has increased the standard deduction for taxes over the past several years. The state's income tax structure was changed in 2013 from a progressive system topping out at 7.75% to a flat rate of 5.8%. The rate has since been further reduced to the current 5.25%, and the FY 2021-22 budget scheduled the rate to fall to 3.99% after 2026.

    Also in 2013, the standard deduction was increased from $6,000 to $15,000 for married filers. The deduction has likewise been increased in subsequent years, with last year's budget increasing it to $25,500 for married filers. The result is more low-income households paying no state income taxes.

    For those receiving student loan "forgiveness" who are upset about the news that it will be subject to state tax, you can be thankful that the tax burden will be less than it would be without the last decade of tax reforms.

Are you in favor of the Joe Biden Executive Order, just weeks before the midterm elections, to shift the Higher Education debt, of up to $10,000.00 per individual, to the taxpayers of this Republic (estimated at 1/2 trillion)?
  Yes, it costs so much to go to college, and the right job is so hard to find in my focus of study.
  No, one's individual debt should be born by the beneficiary of that debt; certainly NOT by others that work to support their own families and pay their own debts, and their taxes.
  I am bereft of knowledge, so who cares?
212 total vote(s)     What's your Opinion?

Inarguably, the policies of the Democrats in congress and Joe Biden as the Executive is plunging the United States into a recession, if we are not already there; a recession that was completely avoidable. Will abrupt changes in policies occur in time?
  Yes, the Democrats have a bold plan, yet to be revealed, to save us.
  No, there will have to be a complete undoing of the damage done by these Democrats.
  I can't do simple math, so how am I to understand the concept of basic economics.
711 total vote(s)     What's your Opinion?

Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

Biden Deleted Tweet Claiming Government Spending Helped ‘Economic Recovery’ John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics Stacey Abrams Claims The 2022 Midterms Have Already Been Stolen


Latest Op-Ed & Politics

Fox News host Tucker Carlson documented U.S. Senate candidate John Fetterman’s (D-PA) political ascension during a segment on his show this week in which he highlighted the 53-year-old’s lack of real world accomplishments.
Popping into your inbox for your DAILY REMINDER that (even though it’s been said a million times before) Cheri Beasley and Wiley Nickel are dangerous for North Carolina.
The Heritage Foundation will release a new ranking of educational freedom among the states on Friday, according to a report from The Wall Street Journal.
Local father Justin Walker works 60 hours a week, helps with the kids and housework, plays in a church softball league, volunteers for Sunday service, and does yard work on the weekends.
Woke Hollywood is going gaga over a movie about a gay cannibal, but for normal people, one of the summer’s biggest hits is a documentary that began with a simple question: “What is a Woman?”
RX Industries, of South Carolina, has announced the completion of its expansion in Beaufort County (SC).
Welcome to the second part of this week’s Midterm Exam — complete with tidbits and stories from races around the country. Extensive midterm coverage, and more detailed reports, can be found here.
North Carolina can take a pension away from the period of time that a person is indicted or convicted of embezzlement or a sex crime, etc. under a felony forfeiture law.


A screenshot of an excerpt from a sex education book that recommends parents invite their young children into bed to watch while they have sexual relations circulated on social media on Thursday.
Everyone is either a member of a family, or has close association with a family that is forced to shelter a pathetic character, ignobly tolerated; a family member that exists only to be a monumental embarrassment on their best days; their worst days are horror stories.
Sen. Raphael Warnock (D-GA) is a 53-year-old reverend from Atlanta, Georgia, currently seeking re-election against GOP nominee Herschel Walker. The most recent polls show that Walker is expected to defeat Warnock in November.
The people of Martha's Vineyard are facing a border crisis, with immigrants being shipped in from Florida by the planeload.
A new study published Monday revealed trace amounts of COVID vaccine mRNAs were found in the breast milk of some lactating women.
The New Orleans Police Department has turned to hiring civilians to fill staffing needs as it faces ongoing violent crime in the city.
Former “Fox News Sunday” anchor Chris Wallace’s CNN show debuted with lackluster ratings — losing big to his former network’s Sunday evening show hosted by former Congressman Trey Gowdy (R-SC).


Back to Top