Connecticut HB05113 establishes a personal income tax deduction for cancelled debt and debt relief on student loans, medical debt, and credit card.

Connecticut HB05113 amends the general statutes to exempt from personal income tax the amount of any state and federal debt settlements and debt relief received by a taxpayer for student loans, medical debt, and credit card debt. This bill aims to provide financial relief to taxpayers by reducing their taxable income based on the amount of debt forgiveness they receive in these specific areas.

Connecticut HB05113 establishes a personal income tax deduction for cancelled debt and debt relief on student loans, medical debt, and credit card.

Connecticut HB05113 amends the general statutes to exempt from personal income tax the amount of any state and federal debt settlements and debt relief received by a taxpayer for student loans, medical debt, and credit card debt. This bill aims to provide financial relief to taxpayers by reducing their taxable income based on the amount of debt forgiveness they receive in these specific areas.