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Returning Member
posted Mar 31, 2025 12:42:29 PM

The Art Institutes Discharge Question

I had my loan Discharge my question is do I need to report it in my State tax return? I live in California. Also would it be consider student loans forgiven under the American Rescue Plan Act?

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Level 3
Mar 31, 2025 1:01:10 PM

ARPA refers to the American Rescue Plan Act, passed in March 2021. It made student loan forgiveness tax-free at the federal level through 2025. California does not yet conform to federal law on this exemption.

 

https://www.ftb.ca.gov/tax-pros/law/legislation/2023-2024/AB26-120522-032223.pdf