My wife"s Parent Plus loans were discharged due to her being permanently disabled. We are under a 3 year monitoring status. I know I dont have to pay federal taxes on the discharge but I need to know if the State of Maryland taxes the amount of the discharge.
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You will not enter the discharge in the federal section of TurboTax, so it will not flow down to your state tax return for Maryland. So, unless you see an instruction to add it to Maryland, then you don't need to be concerned about it. I could not find anything in the Maryland tax instructions on it.
You will not enter the discharge in the federal section of TurboTax, so it will not flow down to your state tax return for Maryland. So, unless you see an instruction to add it to Maryland, then you don't need to be concerned about it. I could not find anything in the Maryland tax instructions on it.
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