The U.S. Department of Education has not disclosed how it will dole out the student debt forgiveness. The tax board, in an email to The Bee, stated:“In the case of the federal student loan debt forgiveness announced recently, it does not appear that the student loan forgiveness is occurring under Section 1098e; therefore, the student loan debt forgiveness would be taxable in California.”It’s a fuzzy maybe, then, as we wait for clarification from the federal government on how this will be done. See my statement on federal student debt relief with @SenToniAtkins here. Which states will tax student loan forgiveness? Below is a list from the Tax Policy Center stating which states are taxing student loan forgiveness, reviewing it, or not taxing it.

Source: Los Angeles Times October 13, 2022 16:00 UTC