What cancelled debt is taxable to Arkansas?

Generally cancelled debt is considered taxable income because it represents forgiveness of a debt obligation that the taxpayer would have otherwise been required to pay. However, there are some exceptions and exclusions that may apply, including but not limited to:

• Student loans forgiven under the Public Student Loan forgiveness program (PSLF)
• Student loans forgiven for due to total and permanent disability (TPD)

NOTE: Please check with your student loan provider to see what type of loan forgiveness you received.