In general, if you have cancellation of debt income because your debt is
canceled, forgiven, or discharged for less than the amount you must
pay, the amount of the canceled debt is taxable and you must report the
canceled debt on your tax return for the year the cancellation occurs.
If the 1099-C cancelled debt does not meet the requirements as an exception or exclusions from gross income, then the entire amount of the forgiven debt is to be included in gross income.
See requirements for exceptions and exclusions - https://www.irs.gov/taxtopics/tc431
https://www.irs.gov/pub/irs-pdf/p4681.pdf
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