Checklist of What Rules and Information the IRS Will Be Verifying

Excludable Income - Discharged Student Loans

You have not reported on your tax return:

____ Income if your student loan is canceled because you agreed to certain conditions to obtain the loan and then performed the services required. Under the terms of the loan you must be required to work for a specified period of time in certain professions for one of a broad class of employers. The loan must have been made by (1) The government--federal, state or local or an instrumentality, agency or subdivision thereof, (2) A Tax-exempt benefit corporation that has assumed control of a state, county or municipal hospital and whose employees are considered public employees under state law or (3) An educational organization under an agreement with an entity described in (1) or (2) that provided the funds to the institution to make the loan.

____ Income because of cancellation of a student loan under section 465 of the Higher Education Act of 1965.

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© 1986, 1998 to 2002, Jack Warren Wade, Jr.