I received Public Service Loan Forgiveness (PSLF) last year. Based on my research North Carolina does not tax PSLF as income. Is this correct?

Forum|Forum|3 years ago
February 17, 2023
1 reply
0 views

No text available

TurboTax Online

MAK70

Yes, North Carolina did not adopt Code § 108(f)(5), as amended by section 9675 of ARPA. An individual who excludes Federal Student Loan Relief from AGI on the federal tax return must add back the excluded amount when calculating North Carolina taxable income for taxable years beginning on or after January 1, 2021.

DrShawnCole

North Carolina DOR issued a NOTICE on 14 December 2022 which states that amounts forgiven under the Public Service Loan Forgiveness program is NOT treated as income and therefore does not have to be added to the person's AGI for tax purposes in North Carolina. See the notice here: open (ncdor.gov) Read the whole Notice, but the specifics related to PSLF is outlined in footnote 8 at the bottom of page 3.

DaveF1006

According to this latest press release from the State of north Carolina, student loan forgiveness excluded pursuant to IRC 108(f)(5) is currently considered taxable income in North Carolina.

@DrShawnCole

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"