Student loan borrowers could see some tax relief
There was a time when a college education was regarded as a passageway to greater financial security. But the increasing reliance upon student loans to finance an education has changed that. Saddled with decades of debt, an increasingly higher percentage of college graduates are unable to buy homes, stay in their chosen careers, start families, or earn enough to pay back the interest on their loans, much less the principal.
So those making $29,412 or more would earn the maximum credit
Rep. Kaohly Vang Her (DFL-St. Paul) thinks it could. She sponsors HF3072, which would make changes to Minnesota’s student loan credit and perhaps provide some relief by raising the maximum credit and making it refundable.
On Wednesday, the House Taxes Committee heard testimony from several debt holders faced with difficult life decisions before the bill was laid over for possible inclusion in an omnibus tax bill.
When the student loan tax credit came out of the taxes committee in 2017, its chair was Rep
Under the bill, the maximum credit would be increased from the current $500 to $5,000. But it would limit the credit to 17% of a taxpayer’s earned income. Right now, the payday loans MS credit starts to phase out at $10,000 of adjusted gross income, but, under the bill, that phaseout wouldn’t kick in until $50,000.
And it would become a refundable tax credit, meaning that, instead of merely subtracting from taxes owed, it could potentially result in a refund. (περισσότερα…)