I have 1099 c-cancellation of debt(mortgage forgiveness), is this taxable to New Jersey state, do i have to include this as other income in my New jersey return

[mster_mason]

im filing my income tax return , i received 1099 c -cancellation of debt (mortgage forgiveness),  i already include it to my federal income tax but it said that i have to include it in my New Jersey return as other income if its taxable, now my question is my cancellation of debt taxable in New Jersey

[LeeM · Accepted solution]

No, you do not have to include the cancellation of debt as income on your New Jersey income tax return. It should not appear anywhere on your NJ tax return.

You can reference the table Exempt Income on page 18 of the NJ tax return instructions at the link below:

http://www.state.nj.us/treasury/taxation/pdf/current/1040i.pdf