Form 1099-C, Cancellation of Debt
What is Form 1099-C?
If you are liable for a debt that is canceled or forgiven you will receive a Form 1099-C and must include the canceled amount in gross income. If you meet certain exclusions or exceptions you may be able to exclude all or part of the amount from taxation. Turbo Tax will help you determine if you are eligible for any exclusions or exceptions.
Entering Form 1099-C into TurboTax
Don't worry! TurboTax will ask you about any debt you have had cancelled. We will fill out the forms and perform all the calculations for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these directions.
- Select the Federal Taxes tab (the Personal tab in Home & Business).
- Select the Wages & Income subtab.
- Scroll down the Wages & Income screen until you see the Less Common Income section.
- Click on the Start/Update button to the right of Miscellaneous Income, 1099-A, 1099-C.
- Follow the Prompts.
What if I received multiple 1099-Cs?
In general, you may only have one 1099-C per return, using TurboTax. The only exception to this is if you have more that one 1099-C for one type of cancellation for a debt on your main home. For example, you could report two 1099-Cs from different lenders for a foreclosure on your main home.
If you need to file more than one 1099-C in any other situation, have your return completed by a tax preparer.
If you have yet to receive your 1099-C, please click here to explore your options.
If you need to correct or change any information you have entered from your 1099-C, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
For questions about printing, please click here.
If you have questions about the availability of form 1099-C, please click here.