Other Income
Lenders or creditors are required to issue Form 1099-C, Cancellation of Debt, if they cancel a debt owed to them of $600 or more. Generally, an individual taxpayer must include all canceled amounts (even if less than $600) on the “Other Income” line of Form 1040.

What form does cancellation of debt go on?

Form 1099-C
About Form 1099-C, Cancellation of Debt.

Where do I report 1099C?

If you received a Form 1099-C, this amount is generally reported as income on your return….To enter a 1099-C in our program go to:

  • Federal Section.
  • Income – Select My Forms.
  • Less Common Income.
  • Cancellation of Debt Form 1099-C, Form 982.

    Where do I put cancellation of debt on my tax return?

    Enter Code E, Cancellation of Debt, in box 11, “Other Income.”. According to the IRS, this amount is usually included in the your gross income (Form 1040, line 21).

    What do you need to know about cancellation of debt?

    To assist you in reporting your canceled debt, the lender is required to provide you with a Form 1099-C, “Cancellation of Debt,” showing the canceled debt and any interest that was forgiven. This subject can get fairly technical, so you may want to consult with an accountant or tax attorney. Receive a 1099-C form from your creditor.

    Do you have to report canceled debt as income?

    You still need to report that canceled debt as income. Note that a 1099-C is only required for canceled debts of $600 or more. However, this does not mean that you don’t have to report something less. If a bank canceled a debt of $500, you would not receive a 1099-C, but the amount is probably still income.

    Do you have to report cancellation of debt on Form 1099?

    According to the IRS, if you have canceled, forgiven, or discharged debt for less than the amount you pay, the amount of the canceled debt is taxable income. If this is the case, you need to report your canceled debt on on a Form 1099-C, or Cancellation of Debt, for the year the cancellation is set into place.