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NJ AR95
NJ AR95Urges Congress to amend tax code to permanently exclude all forms of discharged student loans from federal income tax.
summary
Introduced
01/09/2024
01/09/2024
In Committee
06/03/2024
06/03/2024
Crossed Over
Passed
10/28/2024
10/28/2024
Dead
Signed/Enacted/Adopted
10/28/2024
10/28/2024
Introduced Session
2024-2025 Regular Session
Bill Summary
This resolution urges Congress to exclude all forms of discharged student loans from the federal income tax. Federal law requires payment of the income tax on forgiven debt except in certain circumstances. For example, student loans forgiven for teachers and public service employees eligible for Teacher Loan Forgiveness and Public Service Loan Forgiveness programs are not subject to the income tax. Discharge of student debt on account of death or disability is also not subject to the income tax but only if the debt is discharged between December 31, 2017 and January 1, 2026. Other forms of discharged student debt, such as the forgiveness of loans in Income-Driven Repayment-Plans after the 20 or 25 year repayment period, are subject to federal income taxation. This House therefore urges Congress to make the discharge of student debt on account of death or disability exception to the income tax a permanent part of the tax code, and to permanently exclude from the income tax all other forms of discharged student loans.
AI Summary
This resolution urges the United States Congress to modify the federal tax code to permanently exclude all forms of discharged student loans from federal income tax. Currently, federal tax law generally requires individuals to pay income tax on forgiven debt, with some exceptions. Specific existing exemptions include student loan forgiveness for teachers and public service employees through specialized programs like Teacher Loan Forgiveness and Public Service Loan Forgiveness. Additionally, student debt discharged due to death or disability is currently tax-exempt, but only for a limited time period between December 31, 2017 and January 1, 2026. Other types of student loan forgiveness, such as loans discharged after 20 or 25 years under Income-Driven Repayment Plans, are presently subject to federal income taxation. The resolution seeks to permanently eliminate income tax liability for all categories of student loan discharge, providing broader financial relief for borrowers whose student loans are forgiven under various circumstances.
Committee Categories
Education
Sponsors (7)
Garnet Hall (D)*,
Shanique Speight (D)*,
Benjie Wimberly (D)*,
Reginald Atkins (D),
Pam Lampitt (D),
Verlina Reynolds-Jackson (D),
Gabriel Rodriguez (D),
Last Action
Filed with Secretary of State (on 10/28/2024)
Official Document
bill text
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/AR95 |
| BillText | https://pub.njleg.gov/Bills/2024/AR/95_R1.HTM |
| Analysis - Statement AHI 6/3/24 | https://pub.njleg.gov/Bills/2024/AR/95_S1.PDF |
| BillText | https://pub.njleg.gov/Bills/2024/AR/95_I1.HTM |
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