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New Member
posted Mar 25, 2025 4:16:18 PM

for Maryland discharged student loan indebtedness, can you only deduct the amount if it was included in FAGI?

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1 Replies
Expert Alumni
Mar 25, 2025 4:30:20 PM

Correct.  To the extent includable in FAGI, the amount of discharged student loan debt is subtracted from the FAGI of a Maryland resident to determine Maryland adjusted gross income.   Discharged student loan debt excluded from FAGI due to changes made in the American Rescue Plan Act does not qualify for the subtraction.  See Tax Alert MD