These 13 states may impose a $1,100 fee on forgiven student debts.

By The Exchange Team

President Joe Biden's student loan forgiveness plan will soon eliminate debt for millions of Americans and it is tax-free.

Most debtors income less than $125,000y/ear or $250,000 for married couples filing jointly qualify for $10,000 in forgiveness

Some states classify cancelled debt as income, says Tax Foundation's state projects VC Jared Walczak.

This may affect borrowers in more than a dozen states, adding a $300 to $1,100 maximum state obligation, according to Walczak.

Arkansas, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, New York, Pennsylvania, South Carolina, Virginia, West Virginia and Wisconsin are among them.

Some states have "rolling conformance," changing state tax legislation when federal rules change, while others may only conform from a set date, he said.

In some cases, states may "decouple" from specific federal requirements to create their own tax system, as per Walczak.