It depends. If you are saying you received a 1099-C from student loan delinquent debt, and it was cancelled, see the information below. It must be included in your income.
Rules changed with the American Rescue Plan Act (ARPA) of 2021.
Student loan forgiveness. The American Rescue Plan Act (ARPA) of 2021 modified the treatment of student loan forgiveness for discharges in 2021 through 2025.
Generally, if you are responsible for making loan payments, and the loan is canceled or repaid by someone else, you must include the amount that was canceled or paid on your behalf in your gross income for tax purposes. However, in certain circumstances, you may be able to exclude this amount from gross income if the loan was one of the following.
- • A loan for postsecondary educational expenses.
- • A private education loan.
- • A loan from an educational organization described in section 170(b)(1)(A)(ii).
- • A loan from an organization exempt from tax under section 501(a) to refinance a student loan.
If you decide you must include the income use the instructions in the link below:
@HowardSinger
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