Forgiven Federal Student Loan Debt Is Not Virginia Taxable Income

Virginians won’t have to pay income tax on forgiven federal student debt recently announced by the White House, thanks to efforts in previous years to make sure Virginians weren’t taxed on COVID-19 relief.

“[T]he amount of student loan debt that was forgiven will be left out of federal adjusted gross income, and, by extension, Virginia taxable income, without any further action by the General Assembly,” Virginia Division of Legislative Services Stephen Kindermann said in an email Delegate Vivian Watts (D-Fairfax) shared with The Virginia Star.

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