Torrance, CA – Assemblymember Al Muratsuchi’s (D-Torrance) Assembly Bill (AB) 461, which will expand the existing exclusion for forgiven or canceled debt from gross income in determining tax liability, was approved by the Assembly on a 76-0 vote on Wednesday, May 31st. Current law allows for forgiving or canceling student loan debt, but the forgiven loan debt may still be assessed as a tax liability.
“This is a bipartisan tax cut based on the simple principle that no one should be taxed for forgiven student loans,” said Muratsuchi.
Assemblymember Al Muratsuchi represents California’s 66th Assembly District, which includes El Camino Village, Gardena, Harbor City, Harbor Gateway, Hermosa Beach, Lomita, Los Angeles, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Torrance, and West Carson. He serves as Chairman of the Joint Legislative Audit Committee and the Assembly Select Committee on Aerospace. Muratsuchi is a member of the Assembly Committees on Appropriations, Budget, Budget Subcommittee 2, Natural Resources, Utilities and Energy, and Veterans Affairs.