Pennsylvania will no longer impose state income taxes on public sector workers and nurses who receive student loan forgiveness from two major programs. If you participate in the federal Public Service Loan Forgiveness Program or the Pennsylvania Student Loan Relief for Nurses Program, Pennsylvania will not impose state income taxes on the amount of loan forgiven.
Governor Wolf announced the change so those people who have chosen to serve the public should not be burdened by a tax on the forgiven loans.
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