When a student loan is forgiven, you don’t have to pay the debt back. However, in most cases, the forgiven balance could then be considered money you received as a benefit, making it taxable income.
To avoid also be subject to self-employment tax, I suggest you post it using these guidelines.
- Wages & Income
- 1099 MISC and Other Common Income
- Select Income from a 1099-NEC
- Enter payer's name
- EIN Number
- Amount you received
- State what it was for
- Click None of these apply
- No you do not have expenses to enter
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