WASHINGTON D.C. – Recently, U.S. Rep. Ron Kind introduced the bipartisan Stop Taxing Death & Disability Act. This bill would put an end to the unfair practice of charging parents of deceased students’ taxes on any student loans that are forgiveness.
“There is nothing more heartbreaking than losing a child or having your child become permanently disabled. When a parent faces this unthinkable tragedy, the last thing they need to worry about is how they will come up with the money to pay taxes that they shouldn’t have to pay. We should move quickly to consider this bill. It is the right thing to do,” said Rep. Kind.
The Stop Taxing Death and Disability Act will make sure that an individual’s gross income does not include any amounts of debt discharged as a result of a student’s death or total and permanent disability. This exception would apply even if a parent of the deceased or disabled student received the loan on behalf of the student.