Do I have to report cancellation of debt?

If a debt is canceled, forgiven, or discharged for less than the amount you must pay, you will have to report the canceled debt as taxable income on your tax return for the year of the cancellation. Keep in mind that your creditor is also obligated to report the cancellation if debt.

How does a 1099C affect my tax refund?

If a creditor cancelled a debt of $600 and more, you will receive form 1099 C. Therefore, you should report the amount on your tax return and since it's considered as taxable income it may lower your tax refund.

What if I received a 1099 C Form after I filed my taxes?

In this case, IRS might send you a notice asking if you agree with an automatic correction. If they didn't you should amend your tax return and include the additional information.

Form 1099-C (2022-2023): Sign 1099 C Tax Form online

IRS Tax Forms Information returns 1099 FormsFillable Form 1099-C (2022-2023)

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Get your Form 1099-C (2022-2023) in 3 easy steps

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What Is a Form 1099-C (2022-2023)?

Form 1099-C, known as Cancellation of Debt, serves to report various payments and transactions not related to wages. This form is required for cases when lenders and creditors have repaid $ 600 debt or more. After that, they need to report it to the Internal Revenue Service. It is also a part of the 1099 chain of forms required by the IRS.

What do I need 1099-C Form for?

1099-C form screenshot

If your debt of $ 600 or more has been repaid or canceled, Form 1099-C is a way to report it to the IRS.
If the forgiven debt relates to your principal place of residence, you may be entitled to exclude that amount from your income.
If your lender determines that you cannot pay the remaining sum, they will most likely cancel that amount of debt.

PDFLiner provides you with a convenient online form that you can download and fill out online.

Organizations That Work with 1099-C Form 2024

The Internal Revenue Service

Related to 1099-C Resources

How to Fill Out Form 1099-C in 2023?

Click the "Fill Out Form" button above.
The first section of the printable form provides information about a lender and a borrower: full name, address, contact number, etc.
In section 1, you need to fill in the date of the identifiable event.
In field 2, add information about the amount of debt, either actual or expected, to be paid off.
The next field shows the interest included in the debt.
In box 4, you need to provide a debt description.
Box 5 and 6 reveal whether you are responsible for the repayment and the reasons for completing the form.
The last field is needed to enter the fair market value.
After completing the fillable 1099-C Form, you can save and send this form online. You can also print it to send the form to the required address.
Сheck all the fields carefully to ensure the information is accurate.

Form Versions

2021 Fillable Form 1099-C for 2021 tax year Fill Out Form

FAQ: IRS Form 1099-C (2022-2023) Popular Questions

Do I have to report cancellation of debt?

If a debt is canceled, forgiven, or discharged for less than the amount you must pay, you will have to report the canceled debt as taxable income on your tax return for the year of the cancellation. Keep in mind that your creditor is also obligated to report the cancellation if debt.
How does a 1099C affect my tax refund?

If a creditor cancelled a debt of $600 and more, you will receive form 1099 C. Therefore, you should report the amount on your tax return and since it's considered as taxable income it may lower your tax refund.
What if I received a 1099 C Form after I filed my taxes?

In this case, IRS might send you a notice asking if you agree with an automatic correction. If they didn't you should amend your tax return and include the additional information.

Form 1099 C (2022-2023)