AN ACT EXEMPTING FROM THE PERSONAL INCOME TAX THE AMOUNT OF STATE AND FEDERAL DEBT RELIEF RECEIVED BY A TAXPAYER FOR STUDENT LOANS AND MEDICAL DEBT.

Summary

The bill changes state law so that any state or federal debt‑relief payments a taxpayer receives for student loans or medical bills are not counted as taxable income. It would lower the tax burden for individuals who have had such debt forgiven or cancelled, helping them avoid a tax bill on the relief amount.

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