SPRINGFIELD, Ill. (WTVO) — Lawmakers are considering legislation to exempt people from paying income taxes on student loan forgiveness.
The Department of Revenue said that any federal relief borrowers will not be taxed. A spokesperson for the department said that “the Internal Revenue Service is not counting it as taxable, so it will not be included as part of a taxpayer’s federal adjusted gross.”
President Biden’s student loan forgiveness plan is facing legal challenges. The administration announced last week that the pause on student loan repayments is extended to go until the end of June.