Insolvency
Menu Path: Income > Uncommon Income > Canceled Debt (1099-C)
Form 1099-C is used to report cancellation of debt income. However, many people qualify to not have to report the 1099-C amounts as taxable income. Exclusions from reporting your 1099-C as taxable income are available if the debts were canceled because of bankruptcy or insolvency. Insolvency is when your debts exceed your assets at the time the debt was canceled.
Go to the Canceled Debt (1099-C) Information screen for additional details.
Form 1099-C is used to report cancellation of debt income. However, many people qualify to not have to report the 1099-C amounts as taxable income. Exclusions from reporting your 1099-C as taxable income are available if the debts were canceled because of bankruptcy or insolvency. Insolvency is when your debts exceed your assets at the time the debt was canceled.
Go to the Canceled Debt (1099-C) Information screen for additional details.
