South Carolina on the No-Tax List for Forgiven Student Debt

Forgiven student loan debt won’t be taxable in South Carolina, but it might be taxed in North Carolina unless lawmakers change the rules.

In the wake of questions about state taxation after President Joe Biden’s announcement on student loan forgiveness, South Carolina Revenue Department Director Hartley Powell said by email Thursday that the state conformed in May to a federal law provision excluding the forgiven debt from taxable income.

Most states are following the federal government’s lead on the taxation question, though a few still are reviewing the matter.

In North Carolina, lawmakers didn’t adopt a measure to exclude student ...