How do I enter student loan forgiveness using Turbo Tax? I did not get a 1099-C because it's exempt federally but Arkansas requires it to be taxed as other income.

Forum|Forum|1 year ago
March 9, 2025
1 reply
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I am just not sure how to enter it as income so that it only impacts my Arkansas return and not my federal return.

TurboTax Deluxe Online

LenaH

Per the State of Arkansas, page 11, Under current Arkansas law, the amounts discharged under the Public Service Loan Forgiveness (“PSLF”) program should be excluded from gross income.

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DanielleCallaineAuthor

Unfortunately mine wasn't under PSLF but part of the SAVE plan where students with lower balances were forgiven on a shorter timetable. My state does tax this as income and there is also a $150 credit from my state of you make under $90,000 towards what I'd owe. I'm guessing Turbo Tax doesn't have that set up, but thank you anyway!

AmyC

Employee

I can offer a workaround.

I can see it on the form AR- OI on line 8 but using the desktop program, I have to use forms mode and can enter it.
Using the online program, it needs to be entered in the federal and subtracted back out.

Desktop version:

Switch to Forms mode and enter the 1099-C / student loan income.