Califiornia Question re Forgiveness of Debt

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  • Kram BergGold
    Senior Member
    • Jun 2006
    • 2112

    #1

    Califiornia Question re Forgiveness of Debt

    My client moved to CA in July and in November got the Dept of Ed to forgive $66k of student loan debt. I assume this is taxable in CA. Please confirm or teach me something new.
  • DaveinTexas
    Senior Member
    • Jan 2006
    • 731

    #2
    It depends on the reason why it was cancelled

    Originally posted by Kram BergGold
    My client moved to CA in July and in November got the Dept of Ed to forgive $66k of student loan debt. I assume this is taxable in CA. Please confirm or teach me something new.

    Instead of listing the reasons, I will provide you this link that may be helpful: http://www.finaid.org/loans/forgivenesstaxability.phtml

    Quite a thorough explanation, I was taught something.

    I meant to say forgiven, not cancelled.
    Circular 230 Disclosure:

    Don't even think about using the information in this message!

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    • Kram BergGold
      Senior Member
      • Jun 2006
      • 2112

      #3
      CA not Federal

      I had already found that link, which confirned it was Federally taxable. I was wondering if maybe there was some way it was not taxable in CA.

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