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Last Updated: 1/23/2018

Discharge of Indebtedness for Education Loans Subtraction

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Beginning in tax year 2017, individuals whose qualified education loans are forgiven may qualify for a subtraction from income of the entire amount forgiven.

Do I qualify for this subtraction?

You may qualify if your qualified education loan is discharged after completing a federal income-based repayment plan. Types of discharged student loans that may qualify include any of the following:
  • Minnesota Teacher Shortage Loan Repayment Program
  • Income-based repayment plans
  • Income-contingent repayment plans
  • Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE) programs

How do I file this subtraction?

Complete Schedule M1M, Income Additions and Subtractions, to claim this subtraction from Minnesota income.