Bill Text: NJ SR75 | 2018-2019 | Regular Session | Introduced
Bill Title: Urges President and Congress of US to enact legislation which prevents IRS from collecting taxes on any amount of student loan forgiven for deceased veterans. *
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2019-06-10 - Filed with Secretary of State [SR75 Detail]
Download: New_Jersey-2018-SR75-Introduced.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Urges President and Congress of US to enact H.R. 500 which prevents IRS from collecting taxes on amount of student loan forgiven for deceased veterans.
CURRENT VERSION OF TEXT
As introduced.
A Senate Resolution urging the President and Congress to enact H.R. 500 which prevents the IRS from collecting taxes on any amount of student loan forgiven for deceased veterans.
Whereas, Each member of the United States Armed Forces serves our country to protect the citizens of the United States and, in 2015, there were over one million active duty members of the Armed Forces; and
Whereas, If a service member sustains an injury or illness while on active duty they may be discharged and return home to pursue higher educational opportunities; and
Whereas, Many service members embrace the opportunity to pursue higher education through the various tuition assistance programs and college funds offered to service members, which may be used in combination with federal and private student loans to pay for the cost of college; and
Whereas, If a service member loses his or her life as a result of an injury or illness sustained while on active duty, the federal education loans are forgiven under the Higher Education Act and private loan companies can choose to forgive the education loans; and
Whereas, When an educational loan is forgiven the Internal Revenue Code categorizes the amount of the loan as taxable gross income for a cosigner on the loan, which can include both family and friends of the deceased service member; and
Whereas, Taxing loan forgiveness as income can be burdensome to family members and friends especially during a time when they are grieving the loss of their loved one; and
Whereas, Families of veterans who lost their lives as a result of an illness or injury sustained while serving on active duty have already sacrificed so much for the United States; and
Whereas, The federal bill H.R.500, named the "Andrew P. Carpenter Tax Act," would amend the Internal Revenue Code to prevent the Internal Revenue Service from collecting taxes on any amount of student loan forgiven; and
Whereas, The federal bill will help to ease the financial burden for individuals who are already grieving for the loss of their loved one; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. This House respectfully urges the President and Congress of the United States to enact H.R.500 which amends the Internal Revenue Code to prevent the Internal Revenue Service from collecting taxes on any amount of student loan forgiven for deceased veterans.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the President and Vice President of the United States, the United States Secretary of Defense, the Majority and Minority Leader of the United States Senate, the Speaker and the Minority Leader of the United States House of Representatives, and every member of Congress from New Jersey.
STATEMENT
This resolution urges the President and Congress of the United States to enact H.R.500 which prevents the Internal Revenue Service from collecting taxes on any amount of student loan forgiven for deceased veterans.
Each member of the United States Armed Forces serves our country to protect the citizens of the United States and, in 2015, there were over one million active duty members of the Armed Forces. If a service member sustains an injury or illness while on active duty they may be discharged and return home to pursue higher educational opportunities. Many service members embrace the opportunity to pursue higher education through the various tuition assistance programs and college funds offered to service members, which may be used in combination with federal and private student loans to pay for the cost of college. If a service member loses his or her life as a result of an injury or illness sustained while on active duty, the federal education loans are forgiven under the Higher Education Act and private loan companies can choose to forgive the education loans.
When an educational loan is forgiven the Internal Revenue Code categorizes the amount of the loan as taxable gross income for a cosigner on the loan, which can include both family and friends of the deceased service member. Taxing loan forgiveness as income can be burdensome to family members and friends especially during a time when they are grieving the loss of their loved one. Families of veterans who lost their lives as a result of an illness or injury sustained while serving on active duty have already sacrificed so much for the United States.
The federal bill H.R. 500, named the "Andrew P. Carpenter Tax Act," would amend the Internal Revenue Code to prevent the Internal Revenue Service from collecting taxes on any amount of student loan forgiven. The federal bill will help to ease the financial burden for individuals who are already grieving for the loss of their loved one.
