Do I have to report my canceled debt as income?

You may qualify to not have to report the 1099-C amounts as income if you were bankrupt or insolvent at the time the debt was canceled or if your canceled debt was qualified mortgage forgiveness.

We'll help you decide whether or not you qualify to exclude your canceled debt from your taxable income, then we'll calculate the amount you're allowed to exclude.

If you need help to determine your amount of insolvency, use the IRS Insolvency Worksheet .