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Category: 1099's

What is a Form 1099-C? Cancellation of Debt (View a sample form)

A 1099-C is received when you have a debt (home, credit card, student loan, etc.) cancelled. When this happens, it means that you received money when the debt was initially incurred, but you never had to pay it back. Because you are not paying the debt back, it turns out that the original debt was actually income, and it must be reported on your return.

However, there are certain circumstances when you can exclude the cancelled debt from your income. For information about these circumstances, click here.

To view a sample Form 1099-C, click here.