x
Breaking News
More () »

Maine family changes a federal income tax law

The Brennens were hit with an income tax bill for tens of thousands of dollars when their son died and his loans were forgiven.

TOPSHAM, Maine (NEWS CENTER) -- It's not often you can point to one phone call from a Maine constituent and say this is what changed a federal law; but according to Senator Angus King, it just happened.

We first met Don and Nora Brennen two years ago. Their son suffered a brain aneurysm and died just 6 months after graduating from college.

Keegan's loans were forgiven, but the IRS flagged that as income and as co-signers, the Brennens were hit with a tax bill for $33-thousand.

They're still paying that bill, but some good news came tucked into the controversial tax bill.

Keegan Brennen died in November of 2012. Because he didn't have a chance to use his education, his student loans were forgiven - $77,000 worth.

Two months later, the Brennens owed $33-thousand in taxes because Keegan's forgiven loans were considered taxable income.

"We’re not bad people," said the Brennens. "We pay our bills, we’re basically middle-class people. We just had this big tax bill. We were both in the military we always help other people, but during this time we were like where do we go? Who helps us? And there was nothing."

They reached out to their Congressional Delegation.

"They got in touch with my office and I said, 'That’s just crazy.' I reached out to other senators and they said that has happened around the country," recalls Senator Angus King, who then worked on a bill to change that.

"Lo and behold, it got into the big tax bill that passed in December." Senator King says the law now eliminates an income tax on student loans forgiven following a death, or a physical injury that prevents an education from being used.

The change won't help the Brennens. who have a few more years of bills, but it will help other families, and that's okay with them.

"It brings us some closure," said Don Brennen.

"All we have is our story, and they listened to it," said Nora Brennen.

Before You Leave, Check This Out