If you have more than $600 of debt forgiven, your lender should send you a 1099-C Cancellation of Debt form. This form is a tax document that the lender is required to file. It will help you determine ...

Most people are in for a surprise when they receive a 1099-C, never realizing that canceled debt is often treated just like any other dollar of ordinary income. Creditors record canceled debts on a ...

Pay attention. This is one of my posts with an important lesson rather than an entertaining story. The lesson comes from a Tax Court decision - TCM 2018-140. You will find out the taxpayer's name if ...

・Starting January 1, 2026, forgiven federal or private student-loan balances may once again be considered taxable income. ・If forgiveness occurs in 2026 or later, you’ll likely receive Form 1099-C ...

Similar to income reported on any Form 1099 issued to the taxpayer, absent any exclusions (discussed in Q to Q ) or other legal defenses, the discharged debtor must include the amount of the forgiven ...

The Tax Court, in a recent summary opinion, ruled that an individual did not have cancellation of debt income in the year that a collection agency issued him a Form 1099-C and stopped its automated ...

Based on the discussion in Q and Q , a taxpayer who receives a Form 1099-C has the following two concerns: (1) has the debt been formally discharged by the creditor, and, if so, was it discharged in ...

You probably have heard that running cocktail hour joke about the two sure things in life — death and taxes. Well that chuckle starter came up again during the BHPH Report’s conversation with ...

I just got a tax document on a bad business credit card debt-1099-C what will this do to my tax refund status? It is for 3809.09. My taxable income was around 32,000.00 (personal income not the ...

You finally did it. You filed your taxes and now need only await your return, to be spent on a new TV or stocked away in an IRA or whatever you want — it’s your money again, and not Uncle Sam’s.