topic Borrowers Defense MS in Get your taxes done using TurboTax

Borrowers Defense MS

bsbaby0704 — Wed, 29 Jan 2025 23:09:31 GMT

I recently had a large amount of my student loans discharged based on the Sweet v Cardona due to my school misrepresentation. I reside in MS, do I need to prepare to pay taxes on the amount discharged? If so do you know the percentage it will be taxed at?

Re: Borrowers Defense MS

MinhT1 — Wed, 29 Jan 2025 23:14:38 GMT

Student loan forgiveness due to school misrepresentation is not taxable,

Please read this TurboTax article for more information.

Re: Borrowers Defense MS

bsbaby0704 — Thu, 30 Jan 2025 13:07:01 GMT

I know they are not federally taxed, but I’ve been lead to believe that MS is one of 5 states imposing state tax. Is that true or can they not do it since the loans were discharged as a part of the Sweet V Cardena lawsuit?