Form 1099-C

If debt of $600 or more is canceled or forgiven by a federal government agency, financial institution, or credit union, the taxpayer will receive Form 1099-C, Cancellation of Debt. Box 2 on the form reports the amount of debt canceled, and box 3 reports any interest that's included in the box 2 amount. Generally, canceled debt must be included in income, but not all canceled debt is required to be included in income. See IRS Publication 525, Taxable and Nontaxable Income, for details on how to determine the tax ramifications of the canceled debt.

Related content

Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close