I’m also in NY and received a 1099-C from Discover. According to the ARPA, it shouldn’t be considered taxable income. Furthermore, on the IRS website about 1099-C — it states:
“Special rule for student loan discharges for 2021 through 2025.
The American Rescue Plan Act 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.”
and this is from a private education loan. Therefore, based on everything I’ve been reading, this 1099-C from Discover is non-taxable income federally and for those in NY, stately.
