Student Loans Discharged or Forgiven under any Federally Authorized Program..I had a federal loan that was forgiven in 2023 shuold i enter the amount that was discharged?

Forum|Forum|1 year ago
February 1, 2025
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Im not sure how to know if i should be claiming the loan that was forgiven. Any help exlpaining would be greatly appreciated.

Best answer by KeshaH

Neither the IRS nor the state of New York taxes loans forgiven under the PSLF program.

You don't need to include anything on this screen. You'd only need to include an amount here if you had loans forgiven that were not excluded from federal taxable income.

KeshaH

Federal student loans that were discharged are generally not taxable at the federal level for forgiveness through 2025. This includes forgiveness from:

- the President's broad federal student loan forgiveness program

- Public Service Loan Forgiveness (PSLF)

- income driven repayment plans (IDR)

- total and permanent disability discharge

However, some states might treat the forgiveness differently for state tax purposes. The treatment would vary by state.

Can you confirm the specific loan forgiveness you received and what state you live in? This would help ensure you're getting the most accurate guidance.

jandjdelabruereAuthor

Thank you for your reply. The type of loan forgiveness was called Public Service Loan Forgiveness (PSLF) Program. I live in New York state.

Thank you

KeshaHAnswer

Neither the IRS nor the state of New York taxes loans forgiven under the PSLF program.

You don't need to include anything on this screen. You'd only need to include an amount here if you had loans forgiven that were not excluded from federal taxable income.