This article was updated for Tax Year 2023, last edited on December 18th, 2023.
A Form 1099-C is for canceled debt exceeding $600.00 or more. Per the IRS, your canceled debt may be considered taxable if the amount forgiven was less than the amount you actually paid. There are exceptions which include but are not limited to: debt related to a Title 11 bankruptcy case and qualified real property business indebtedness.
Additional information about canceled debt can be found here.
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