You will receive a 1099-C Cancelation of Debt form if a lender forgives more than $600 of taxable debt. You must include the ...

The lender is usually required to report the amount of the canceled debt to you and the Internal Revenue Service on Form 1099-C, Cancellation of Debt. In your case, you defaulted on the loans and ...

While debt settlement can reduce the amount of money you owe creditors, you could be liable for taxes on the canceled ...

If you do, you'll be given a Form 1099-C by the creditor that forgave the debt, and you'll submit this form when you file your taxes for the year the debt was forgiven. When is cancellation of ...

Amounts forgiven through debt settlement may be taxed as income by the IRS. An IRS worksheet shows how to avoid paying taxes on debt settlement when you're insolvent. Taxpayers who are insolvent ...