State tax filing
Yes you would have to include it as an adjustment to federal income on your Indiana return.
When going through your state return, you will come to a screen that says Let's see how Indiana taxes income differently. Click Continue.
On the next screen, you'll see a list of items that the state treats differently than the federal. Scroll down to the Miscellaneous section and click Start next to Other Federal/State Differences.
Enter the amount of loan forgiveness you received on the Student Loan Discharge line.
