Richmond, Va. (Newsradiowrva.com) - Despite some reports that Virginia would tax loans forgiven under President Joe Biden's (D) federal student loan forgiveness plan, the Virginia Tax Department says that is not the case. Biden recently announced a plan to forgive up to $10,000 in federal student loans, and up to $20,000 for Pell Grant recipients.
Tax Spokeswoman Heather Cooper says, "currently, Virginia conforms to the American Rescue Plan Act (ARPA)'s provision excluding student loan forgiveness from gross income for Taxable Years 2021 through 2025. As a result, to the extent that student loans forgiven through the recently announced student loan forgiveness program are exempt from federal taxation under this provision, they would not be taxable on the Virginia income tax return."
Biden just announced the plan this month.
