According to the IRS, nearly any debt you owe that is canceled, forgiven or discharged becomes taxable income to you. You should receive a Form 1099-C, "Cancellation of Debt," from the lender that forgave the debt.
Here’s how to remove Form 1099-C:
- Tap Tax Tools in the left column
- Then Tools
- Select Delete a Form in the center
- Find Form 1099-C and Canceled Debt Summary and delete both
- Tap Continue With My Return to get back to the interview mode
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