The National Directory of Certified Public Accountants

Ask A CPA - Cancellation of Debt

What Form Is A Cancellation Of Debt Reported On?

Form 1099-C is issued by banks, credit unions and federal government agencies that forgives or cancels a debt that you owe $600 or more. Generally the amount in box 2 must be reported as other income on Form 1040 line 21 unless one of the exclusions applies.

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