Am I supposed to use the 1099-c form for tax purposes this year. It is a cancellation of debt.?

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Am I supposed to use the 1099-c form for tax purposes this year. It is a cancellation of debt.?

2007-01-30 14:40:24 · 1 answers · asked by lolitha w 1 in Business & Finance ➔ Taxes ➔ United States

1 answers

Cancelation of debt is considered income.

It goes on line 21 on the 1040 (long form)

If you are insolvent there is a process where you do not have to include it as income but I can not remember the form number.

2007-01-30 14:48:51 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋