My wife is in the same situation except, full disability determined July 2021, student loan discharged due to that full disability December 2021, and a 3 year monitoring period ending in December 2024. I understand she will fall under the same 3 year period and receive the 1099-C in 2024 and will not be considered as taxable income for federal taxes. My question is how does this all apply to Virginia state taxes. Will this count as taxable income for state even though it will not be taxable federally? For virginia is it also considered fully discharged at the end of the 3 year monitoring period?
Thank you in advance.
