JulieS
Expert Alumni

Get your taxes done using TurboTax

Yes, the forgiveness of credit debt is taxable in the year it is granted, unless you are insolvent at the time. 

 

This means you can expect to receive a 1099-C with $2100 on it. Even if you don't get the form, it's still taxable.

 

Follow this link for more on reporting 1099-C.

 

Follow this link for more on insolvency.

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