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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]
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