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Borrowers Defense MS

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?

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2 Replies
MinhT1
Employee Tax Expert

Borrowers Defense MS

Student loan forgiveness due to school misrepresentation is not taxable,

 

Please read this TurboTax article for more information.

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Borrowers Defense MS

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? 

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