☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 16, 2025 3:29:02 PM

Private student loan discharged in 2024

Hello,

 

I received a 1099-c from Discover Student loans for a loan that was discharged in September 2024.  Per the American Rescue Plan Act, it sounds like this is not-taxable.  Can you confirm this is your understanding as well and give recommendation on how to enter this (or not enter this) into TurboTax? 

 

Thank you!

0 1 959
1 Replies
Expert Alumni
Feb 16, 2025 3:39:25 PM

The American Rescue Plan Act of 2021 excluded student loan forgiveness from federal income tax for tax years 2021–2025.

 

Your student loan forgiveness is not taxable and you don't need to enter that form 1099-C on your tax return.

 

Please read this IRS publication, page 37.