I spoke with the Borrowers Defense contact at Dept of Education and they verified it is NOT Taxable. Your state may differ. When you say you spoke with someone at TurboTax did they say yes it is or here read this link? Im guessing they gave you the link tat you screenshotted with settlement tax info which is vague and isn't true for all settlements. the first line you posted say "Legal settlements that are taxable" does not mean Sweet vs Cardona is taxable it means if a settlement is taxable do the steps below. Everything i have found online and the various people i have spoke with at DoE and my loan servicer have stated it is not taxable.
