California conforms to the federal student loan interest deduction (with one exception for a spouse/RDP of a non-California domiciled military taxpayer residing in a community property state – see worksheet in the instructions to Schedule CA (540)).

AB 91 (signed by the governor 6/27/2019) conforms California law to the TCJA provision that certain student loan debt cancelled upon the death or disability of the student is not taxable, effective for loans cancelled after December 31, 2018. Note: That means for 2018, CA did not conform.

California has not conformed to the CARES Act provision that excludes certain employer payment of student loans. (2021 FTB Sch CA instructions)

California law does exempt NHSC loan repayment awards from California income taxes. (R&TC Sections 17131 and 17024.5)

American Rescue Plan Act - AB 111 signed by Governor Newsom on May 16, 2023, conforms CA to the American Rescue Plan Act exclusion of certain student loan debt cancellation. See page 6.02.04 of this chapter for details of the ARPA exclusions. The CA provision applies to student loan forgiveness in 2021 and before 2026, the same as the federal time period. CA taxpayers who included the now-excludable student loan forgiveness on their 2021 or 2022 state returns should consider amending the CA return.

Biden’s Student Loan Forgiveness - If the administration’s alternate loan forgiveness program announced after the original program was struck down by the Supreme Court isn’t also stymied by the courts, the amount forgiven will be excludable from both federal and CA income, at least through 2025.