You'll need to sign in or create an account to connect with an expert.
Not necessarily. If you entered it into your federal return, it will roll over into your state return. Each state has different rules for the inclusion of cancelled debt. The amount may be taxable on your federal return but not on your state return and vice versa. You will need to check with your state's Department of Revenue to verify the proper tax treatment of your debt cancellation on your state tax return.
[Edited 03/14/20]
Not necessarily. If you entered it into your federal return, it will roll over into your state return. Each state has different rules for the inclusion of cancelled debt. The amount may be taxable on your federal return but not on your state return and vice versa. You will need to check with your state's Department of Revenue to verify the proper tax treatment of your debt cancellation on your state tax return.
[Edited 03/14/20]
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Jnessa
New Member
carolynpaine
New Member
zzz8881
New Member
Tax_Lego
Returning Member
magellan0
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.