What is Form 1099-C cancellation of debt?
Mia Ramsey
Published Mar 29, 2026
Form 1099-C is used to report a canceled or forgiven debt of $600 or more. The lender submits the form to the IRS and to the borrower, who uses the form to report the canceled debt on his or her income tax return. That amount is reported on Form 1099-C and, in general, is taxable income to you.
How do I report cancellation of debt on tax return?
In general, you must report any taxable amount of a canceled debt as ordinary income from the cancellation of debt on Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors or Form 1040-NR, U.S. Nonresident Alien Income Tax Return as “other income” if the debt is a nonbusiness debt, or …
What is Code F on cancellation of debt?
Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration. Code G — Decision or policy to discontinue collection.
Where does canceled debt go on a 1099-C?
In most cases canceled debt counts as income. If you receive Form 1099-C, you must report the amount on your income tax return on the “Other income” line of your Form 1040 or 1040-SR. Note that you must include the canceled debt in your income even if it’s less than $600 and you don’t receive Form 1099-C. 2
Where does the cancellation of debt go on a 1040?
If you receive Form 1099-C, you must report the amount on your income tax return on the “Other income” line of your Form 1040 or 1040-SR. Note that you must include the canceled debt in your income even if it’s less than $600 and you don’t receive Form 1099-C. 2
What do you need to know about 1099-C tax form?
Form 1099-C is used to report canceled debt, which is generally considered taxable income, to the IRS.
What does the right side of Form 1099-C show?
The right side of the form has seven boxes: Box 1: Date of identifiable event. Box 1 shows the date the earliest identifiable event occurred or the date of when the debt was discharged. Box 2: Amount of debt discharged.
