Borrowers Defense MS

Forum|Forum|1 year ago
January 29, 2025
1 reply
28 views

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?

Not A Product Question

MinhT1

Level 15

Student loan forgiveness due to school misrepresentation is not taxable,

Please read this TurboTax article for more information.

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bsbaby0704Author

Level 2

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?