What is the name of your state? Washington/Alaska
I had a student loan debt from the state of Alaska. I was not able to complete my schooling and am now on disability, I receive VA disability compensation at the 100 percent rating, and Social Security disability. My condition is permanent.
During the 2004 tax period, the State of Alaska, canceled my debt in full, due to my disabilities. As I did not file a tax return for 2004, now the IRS is contacting me demanding I file a 1040 for 2004. The IRS says it is because of the canceled/forgiven Alaska student loan?
Where can I find information on if I have a tax liability for the canceled student loan? Do I have to fill out a 1040 to determine that? What about exceptions for my status, if any?
Thanks in advance for any tips anyone can provide in reply!