Thank you, and I don't mean to doubt your expertise in this area; however, upon finally hearing back from them, my response from Federal Student Aid seems to contradict what you are saying. They claimed Aidvantage should have sent me a 1099 as the amount discharged is, in fact, taxable. When I then contacted Aidvantage with that information they said that, although the amount may be taxable depending on the state I live in, they won't give me a 1099 form for the discharge due to the tax law you listed. If, for sure, WI law states I won't owe any amount forgiven, then I should be in the clear, regardless. It's just disconcerting to me to be getting completely different answers from everyone I ask.
As a fun follow up, I'm wondering, how do people in states that do count the discharge as income claim it on their taxes properly when companies like Aidvantage won't send out 1099s? I asked them that, they simply said they won't send out any 1099 forms. Sorry if the answer is obvious, I'm not a tax genius by any means.
