Tax Conformity Bill Passed - Pres. Biden Student Loan Debt Forgiveness No Longer Taxed in MN.
Just a few moments ago, the MN Senate passed a bill to bring the state’s tax code into conformity with federal tax law on 46 provisions that have been signed into law since 2019.
The bill includes one critical provision for people with student loan debt. With the passage of this bill, you will not pay any taxes if you have student loan debt forgiven under President Biden's loan forgiveness executive order, pending US Supreme Court action. Before this, you would have been required to pay taxes on the forgiveness amount as income as part of your MN taxes.
The IFO worked with our legislative allies, Students United, and many others to push for the early passage of this bill.
Sponsored by Rep. Aisha Gomez (DFL-Mpls) and Sen. Ann Rest (DFL-New Hope), the bill’s changes would — according to the Revenue Department — need to be signed into law by Friday for the department to make the appropriate changes on state tax forms in time for filing. With passage in the Senate today, Gov. Walz will sign it before that deadline.
See the complete list of IFO legislative priorities. Please watch for additional information and action alerts throughout the legislative session. If you have any questions, please get in touch with me at Bohn@ifo.org.