My federal student loans were forgiven under public service loan forgiveness. Do I enter it as Discharged Student Loan Indebtedness for Maryland?

Forum|Forum|1 year ago
March 20, 2025
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SabrinaD2

Forgiven student loans under PSLF aren't taxable at the federal level, and Maryland aligns with this federal treatment. Therefore, you don't need to include or enter the forgiven amount on your Maryland state tax return.

[Edited 04/01/2025|9:11 pm, PST] @ alana-kuhn

alana-kuhnAuthor

Does the document you cited definitely refer to the discharged student loan indebtedness? It seems to discuss an unrelated student loan tax credit. Could you quote the section that applies to the discharged student loan indebtedness?

AmyC

Employee

A public service loan is a discharged debt. See What does it mean to have my federal student loans discharged?

For MD: Code nn is used for discharged student loan debt. See page 17 of the instructions. This implies any discharged student debt included in federal income.

MD begins with the federal AGI so it is only subtracted from MD income when included in the federal. Otherwise, it is already subtracted / not there.

[Edited 3/31/2025 | 8:27 am PST] @alana-kuhn

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