My student loans were forgiven, should I expect to get a tax form?

Forum|Forum|2 years ago
February 9, 2024
1 reply
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Is the amount forgiven considered taxable income?

TurboTax Deluxe Online

TomK2023

Maybe. Did you receive a 1099-C (Cancellation of Debt) in 2023?

Amounts that meet the requirements for any of the following exceptions aren't cancellation of debt income [not taxable]

EXCEPTIONS to cancellation of debt income:

Amounts canceled as gifts, bequests, devises, or inheritances
Certain qualified student loans containing loan provisions for cancellation based on length of employment in certain professions for a broad class of employers
Certain student loan discharges after December 31, 2020, and before January 1, 2026
Amounts received or forgiven under certain student loan repayment assistance programs
Amounts of canceled debt that would be deductible if you, as a cash basis taxpayer, had paid it
A qualified purchase price reduction given by the seller of property to the buyer

IRS Topic no. 431, Canceled debt – Is it taxable or not?

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randall_tribeAuthor

I have not received a 1099-C, I wasn't sure if I would. Haven't had much luck in finding out much information from the Biden loan cancellations. We have held off filing our returns because we don't want to have to do an amendment if a 1099-C showed up after the fact.

mglauner

If it was a forgiven student loan under the American Rescue Plan Act (ARPA), then it will be exempt from the federal income tax but might be taxable in certain states. If you do receive a 1099-C, you can keep it with your tax files, but don't need to enter it in your return.

You should contact your loan servicer for more information.

Here's more info on Student Loan Forgiveness and States Taxing Loan Forgiveness.

[Edited 2/11/2024 | 7:46 pm]