How do I enter student loan forgiveness using Turbo Tax? I did not get a 1099-C because it's exempt federally but Arkansas requires it to be taxed as other income.

[DanielleCallaine]

I am just not sure how to enter it as income so that it only impacts my Arkansas return and not my federal return.

[LenaH]

Per the State of Arkansas, page 11, Under current Arkansas law, the amounts discharged under the Public Service Loan Forgiveness (“PSLF”...

[DanielleCallaine]

Unfortunately mine wasn't under PSLF but part of the SAVE plan where students with lower balances were forgiven on a shorter timetable. My state does tax this as income and there is also a $150 credit from my state of you make under $90,000 towards what I'd owe. I'm guessing Turbo Tax doesn't have that set up, but thank you anyway! 

[AmyC]

I can offer a workaround.

• I can see it on the form AR- OI on line 8 but using the desktop program, I have to use forms mode and can enter it.
• Using the online program, it needs to be entered in the federal and subtracted back out.

Desktop version:

Switch to Forms mode and enter the 1099-C / student loan income.

Online:

1. File the correct federal return
2. Save a copy of your return
3. Once it is accepted, add the 1099-C
4. File the state

[MrsM1]

I am using Turbotax Live Premium. Will I have to delete the state return before filing the federal return or is there a way to save it for later and then make the changes after the federal return is accepted?

Thank you.

[ThomasM125]

No, you don't need to delete the state return. You can file the federal return without filing the state return.