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
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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.
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?
This is under neath the table on in.gov
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.
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