This tax form details anycanceled debt, which can come with tax implications.
Here’s what you oughta know to file your taxes correctly this year.
What is the IRS 1099-C form?
And it’s still best to include it when you file your taxes.
But for the majority of Americans, the canceled debt is likely not taxable income.
The federal exclusion is a temporary provision.
(Note, certain programs like the PSLF may be excluded from taxation in certain states.)
This will keep you out of harm’s way with the IRS, said Steber.
“Sometimes issuers are required to send 1099-C forms and don’t.
And sometimes they’re not required to, but do so anyway,” said Steber.
Therefore, you won’t get a 1099-C. “This could result in the receipt of a 1099-C or a revised 1099-C,” he added.
What if your 1099-C shows an incorrect amount?
Be sure to provide proof.
