Get your taxes done using TurboTax

What you have to do is ask your loan servicer why they won't be providing any 1099C. You must verify with them if the loan was actually forgiven and the amount of the forgiveness. 

 

There may be circumstances that even though your loan forgiveness was exempt for federal tax purposes,you may qualify for state-level loan forgiveness programs that offer tax free loan forgiveness. See HERE  under Subcap "Situations that typically won't cause a tax bomb." 

 

You may to ask your service provider if you possibly qualify under these programs and as such, that is the reason why they are not issuing you the 1099C because you are tax exempt. 

 

If however, you do not qualify, then you would be taxable  and include it in your State of California taxable income. See HERE   under Subcap "1099-C : Cancellation of Debt

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"