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Category: 1099's

1099-C: Discharge of Indebtedness. What is this form and what do I do with it?

If you received a Form 1099-C, this amount is generally reported as income on your return. 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.

To enter a 1099-C in our program go to Federal section >> Income (Enter Myself) >> Other Income >> Cancellation of Debt (1099-C, Form 982)

Please note that there are certain circumstances when you can exclude the cancelled debt from your income. For information about these circumstances, Click here.


For additional info on Form 1099-C: View Sample Form


For information on Form 1099-A: Click here