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Emerald09
New Member

Student loan forgiveness state tax filing indiana

Do I put the student loan forgiveness amount under student loan discharge in the state portion? Never received a 1099c spent hours on the phone with lender and IRS didn't get anywhere but the IRS directed me to my transcripts and found the correct amount forgiven and federal taxes were waived. 

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Vanessa A
Employee Tax Expert

Student loan forgiveness state tax filing indiana

It depends on why it was forgiven.  Indiana taxes student loans forgiven that are not specifically excluded from taxation and that were paid by employers.  If your student loan forgiveness is not specifically excluded from taxation, then yes, you will enter the amount under student loan discharge in the state portion.

 

The below types of forgiveness are specifically excluded from taxes:

  • Public Service Loan Forgiveness
  • Teacher Loan Forgiveness
  • National Health Service Corps Loan Repayment Program
  • Total & Permanent; 60-month; and terminal disability
  • Bankruptcy or Insolvency
  • Death of student (PLUS loans and other federal direct student loans)

 

 

 

 

 

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