Form 1099-C, Cancellation of Debt
Form 1099-C reports debt of $600 or more that a lender cancelled or forgave. Fill in the official IRS PDF below and download it.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is 1099-C?
Form 1099-C, Cancellation of Debt, is an information return filed by applicable financial entities, such as banks, credit unions, and other organizations whose significant trade or business is lending, for each debtor whose debt of $600 or more they cancelled after an identifiable event. The event code, the amount cancelled, and any interest included are reported on the form.
Cancelled debt is generally taxable income to the borrower unless an exclusion applies, such as bankruptcy or insolvency. Borrowers report it on their return and use Form 982 to claim an exclusion when one fits.
Who files 1099-C?
- Banks, credit unions, and other financial institutions that cancel debts of $600 or more
- Federal government agencies and organizations with a significant trade or business of lending money
- A separate form is filed for each debtor and each identifiable cancellation event
- Debtors receive Copy B and must consider the amount when filing their income tax return
How to fill out 1099-C
- Enter the creditor’s name, address, and TIN, then the debtor’s name, address, and TIN.
- Fill in the date of the identifiable event in box 1 and the amount of debt discharged in box 2.
- Report any interest included in the discharged amount in box 3 and describe the debt in box 4.
- Check box 5 if the debtor was personally liable, enter the event code in box 6, and add the property’s fair market value in box 7 if a foreclosure is combined on this form.
- Download the finished PDF, furnish Copy B to the debtor, and file Copy A with the IRS by the deadline in the current instructions.
Quick fill 1099-C on this page
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Frequently asked questions
Is cancelled debt really taxable income?
Usually yes. The general rule is that forgiven debt counts as income in the year it is cancelled. Common exceptions include debts discharged in bankruptcy and cancellations while you are insolvent; Form 982 is used to claim these exclusions.
I got a 1099-C for a debt I already settled years ago. What now?
Creditors sometimes file late or after an identifiable event finally occurs. The tax treatment depends on when the debt was actually cancelled, so review the event date in box 1, and consider getting help from a tax professional if it looks wrong.
What is the difference between settling a debt and having it cancelled?
If you settle for less than you owe, the written-off portion is cancelled debt and can generate a 1099-C for the difference. Paying in full produces no cancellation and no form.