Income tax; exclude forgiven, cancelled or discharged federal student loan debt under the PSLF Program from the definition of "gross income".

HB 842 amends Mississippi's state tax code to exclude forgiven federal student loan debt under the Public Service Loan Forgiveness (PSLF) Program from being counted as taxable "gross income." This change directly affects Mississippi residents who have had their federal student loans forgiven through the PSLF Program, as they will no longer owe state income tax on the forgiven amount. The bill updates Section 27-7-15 of the Mississippi Code to explicitly remove such forgiven debt from the definition of "gross income" for state tax purposes. This aligns Mississippi's tax treatment with federal PSLF program rules, avoiding double taxation on forgiven loans.