My wife had $5000 of student loan debt forgiven this year. She is a teacher and qualified for this forgiveness by teaching for 5 years. Is this taxable under a 1099-C?

travmo86 · ‎January 13, 2020

ReginaM · ‎January 13, 2020

No, teacher loan forgiveness is not taxable. There is nothing to report on your tax return at this point. If you ever receive 1099-C for forgiven debt, you will report it then and show the teacher loan forgiveness as an exception to the debt forgiveness rules. IRS 1099C Instructions.

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travmo86 · ‎January 13, 2020

So when I file our taxes for 2019 (received the forgiveness in the summer of 2019) if we receive a 1099-C afterwards, do we then have to file an amended return, or is this something that the IRS will already know is not taxable?

ReginaM · ‎January 14, 2020

I would recommend waiting to receive the 1099-C to ensure that you report it correctly on your tax return. The deadline for sending those out is January 31st. It will save you time and will ensure that it is accurately filed.

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My wife had $5000 of student loan debt forgiven this year. She is a teacher and qualified for this forgiveness by teaching for 5 years. Is this taxable under a 1099-C?