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Bill would ease tax burden for some disabled veterans

Oct 23, 2017

Credit John M. Cropper / flickr http://j.mp/1SPGCl0

Some disabled Michigan veterans could get some income tax relief from a bill being introduced by state Sen. Rick Jones, R-Grand Ledge.

Jones says he began work on the bill after learning about a Michigan man who was completely disabled after a tour in Afghanistan.

He says the federal government forgave the man's student debt.

But the IRS considers forgiven debt a form of income.

"The federal IRS went after him and said he owes $62,000 in back taxes, and then the great state of Michigan went after him and said he owes $8,000 more," says Jones. "He doesn't have $70,000, so they put a lien on his house and they're garnishing his disability checks."

Disabled combat veterans would not have to pay state income tax on student loan debt, when their loans are forgiven due to combat injuries.

Jones says Michigan Congressman John Moolenar is hoping to introduce a similar bill that would apply to federal income tax.