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If the 2023 student loan was discharged in 2025, Yes, you will need to add the loan discharge to your NC Carolina State Income Tax return. NC is one of the few states that taxes you on student loan discharged during the year. To add this income to your NC state return, go to the State return and within the Education section, Start the Discharge of certain student loan debt section and work through the screens to enter your student loan that was discharged during 2025.
@dalepierson509 if the amount was discharged in 2023, you must go back and amend your 2023 NC state tax return.
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