Federal student loan forgiveness awards

[coolmikee]

Do you have to input the Federal Student Loan Forgiveness Awards with either Federal or State returns?

[AbrahamT]

If you receive loan forgiveness under federal student loan programs, it will likely count as a tax-exempt gain 

See  HERE   under Subcaption  "Situations that typically won't cause a bombshell" for the criteria that is required inorder to qualify for this forgiveness.

Also bear mind that although for federal tax purposes, the loan may be forgiven, some states may tax it nonetheless like Mississipi, NC, Indiana, Minnesota, Wisconsin and Arkansas.

States that will not tax the loan forgiveness include New York, Pennsylvania, Kentucky, Virginia, Hawaii and Idaho.

There is no requirement that any tax related loan forgiveness document be attached for any federal or state tax reporting requirement.

[Edited 02/08/2024|1:30 pm PST]

[Hal_Al]

Reference: https://finance.yahoo.com/personal-finance/tax-on-student-loan-forgiveness-182343895.html#:~:text=Th....