turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Deciphering Your Tax Forms on Feb 19! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

IN borrowers defense student loan

IN.gov states that borrowers defense varies on being taxable in Indiana. How do we find out what those variables are? It doesn’t give you that info on the site. It says not to call IN.gov and to ask a tax professional. Which is what I am doing on here. How does a tax professional get those details on whether it is taxable? Thank you

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies
BillM223
Employee Tax Expert

IN borrowers defense student loan

Here is the info on the Indiana tax website that will let you apply your circumstances to the table to see if your forgiven loan will be taxable in Indiana.

 

Come back if you have any questions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

IN borrowers defense student loan

Thank you. I’ve seen the table. It says on there that borrowers defense varies but the table doesn’t show the variables. How do you find out that information?

IN borrowers defense student loan

IMG_1329.jpeg

This is under neath the table on in.gov

AmyC
Employee Tax Expert

IN borrowers defense student loan

It is in the fine print. The note says:  Taxability of discharged student loan debt due to borrower defense may vary. ITT students who had their debt discharged do not have to pay federal, state, or state/local income taxes (IRS Rev. Proc. 2020-11). In addition, loans discharged pursuant to the settlement in Sweet v. Cardona will not be required to be added back in determining Indiana adjusted gross income.

 

In English,  If you are ITT student, the college is defunct and the loan is not taxable. If you fall under the lawsuit mentioned, it is not taxable. Otherwise, it is taxable. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question